What actions is the Buildingstars franchisee authorizing Buildingstars to take on their behalf regarding customer accounts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
sory assistance in the operation of the franchise, rendered in such manner and available from time to time, as BUILDINGSTARS may deem appropriate. BUILDINGSTARS reserves the right to charge a reasonable fee for such assistance as well as to be compensated for any travel expenses including but not limited to transportation, lodging, meals and other expenses BUILDINGSTARS' employees incur providing such Advisory Assistance.
- 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.
FRANCHISEE further authorizes BUILDINGSTARS to deduct from payments BUILDINGSTARS collects from the Customers the fees described in Sections III and IV of this Agreement and any other amounts due to BUILDINGSTARS, any authorized insurance payments, and any out-of-pocket costs (including but not limited to attorney's fees and court costs) incurred by BUILDINGSTARS in enforcing payment of accounts by Customers, FRANCHISEE or FRANCHISEE'S guarantors.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to perform several actions related to customer accounts. Buildingstars is authorized to bill customers on a scheduled basis, accept payments from these customers, collect accounts receivable, and maintain revenue records. Buildingstars will also provide imprinted invoices, envelopes, and postage for customer billing. Additionally, Buildingstars will make ongoing phone contact and send reminder notices to delinquent customers monthly via mail and fax. Buildingstars will also provide a Monthly Revenue Statement to the franchisee.
Furthermore, the franchisee authorizes Buildingstars to collect cash and other forms of payment from accounts where the franchisee has provided services or products. This includes the authority to endorse the franchisee's name on checks, deposit those checks, sign the franchisee's name on liens, and take any other actions deemed necessary to fulfill the terms of the Franchise Agreement. Buildingstars is also authorized to deduct fees, insurance payments, and out-of-pocket costs (such as attorney's fees and court costs) incurred while enforcing payments from customers, franchisees, or their guarantors from the payments Buildingstars collects from customers.
These authorizations allow Buildingstars to manage the billing and collection aspects of the customer accounts, which can streamline operations for the franchisee. However, the franchisee remains responsible for all collection activities if a customer becomes delinquent in payment, and Buildingstars is not obligated to take further action beyond the scheduled statements, phone contact, and reminder notices. The franchisee must also deliver any money collected from customers to Buildingstars immediately.