What actions is a Buildingstars franchisee authorizing Buildingstars to take on their behalf?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
nt 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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to manage various financial and customer-related tasks. Specifically, Buildingstars is authorized to bill customers on a scheduled basis, accept payments from customer accounts, collect accounts receivable, and maintain revenue records. This arrangement is designed to streamline the billing and collection process for franchisees. Buildingstars will also provide customer invoices, envelopes, and postage.
Buildingstars will also handle ongoing communication with customers, including phone contact and sending reminder notices to delinquent accounts monthly via mail and fax. Buildingstars will provide the franchisee with a Monthly Revenue Statement. Franchisees also authorize Buildingstars to collect cash and other forms of payment, endorse checks, sign its name on liens, and take necessary actions to fulfill the agreement terms.
Furthermore, Buildingstars is authorized to deduct fees, insurance payments, and out-of-pocket costs (including attorney's fees and court costs) from customer payments to cover amounts due to Buildingstars or incurred while enforcing payments. While Buildingstars handles initial billing and collection, the franchisee is responsible for all collection activities if a customer becomes delinquent. Franchisees must also deliver any money collected from customers directly to Buildingstars.