What actions is the Buildingstars franchisee authorizing Buildingstars to take?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Management Services BUILDINGSTARS will provide FRANCHISEE with billing and collection services on its behalf. However, BUILDINGSTARS is not responsible if the Customer fails to pay nor is BUILDINGSTARS required to commence any further action other than as set forth herein if they do not pay. FRANCHISEE is responsible for any and all collection activities if a Customer is delinquent in payment.
- a. Authorization to BUILDINGSTARS. FRANCHISEE hereby authorizes BUILDINGSTARS to bill each Customer on a scheduled basis, accept payments from customer accounts, collect accounts receivable, and maintain revenue records. BUILDINGSTARS will provide Customer imprinted invoices, envelopes and postage. In addition, BUILDINGSTARS will provide ongoing phone contact and reminder notices, both mailed and faxed to delinquent Customers on a monthly basis. Once a month BUILDINGSTARS will provide FRANCHISEE a Monthly Revenue Statement. FRANCHISEE hereby authorizes BUILDINGSTARS to collect cash and other forms of payment from accounts to which FRANCHISEE has rendered services or products, endorse FRANCHISEE'S name on and deposit checks, sign its name on liens, and take any other action necessary to carry out the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, as part of the franchise agreement, the franchisee authorizes Buildingstars to manage certain financial aspects of customer accounts. Specifically, Buildingstars is authorized to bill customers, accept payments, collect accounts receivable, and maintain revenue records on behalf of the franchisee. Buildingstars will also provide customer invoices, envelopes, postage, ongoing phone contact, and reminder notices to delinquent customers. The franchisee will receive a monthly revenue statement from Buildingstars.
This authorization extends to handling funds directly. Buildingstars is permitted to collect cash and other forms of payment from the franchisee's customer accounts, endorse the franchisee's name on checks, deposit checks, sign the franchisee's name on liens, and take any other actions deemed necessary to fulfill the terms of the franchise agreement.
This arrangement provides a level of administrative support to the franchisee, potentially reducing the burden of managing billing and collections. However, the franchisee should carefully consider the implications of granting such broad financial authority to Buildingstars, including ensuring proper oversight and accountability to safeguard their financial interests.