Is Buildingstars or its affiliates required to accept payments after they are due or extend credit to the Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither BUILDINGSTARS nor any of its Affiliates are required to accept payments after same are due or extend credit or otherwise finance FRANCHISEE'S operation of the franchise.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, neither Buildingstars nor its affiliates are required to accept payments after they are due or extend credit to franchisees. This policy is clearly stated in the franchise agreement, giving Buildingstars the discretion to manage payments and debts.
This means that as a Buildingstars franchisee, you cannot rely on leniency regarding payment deadlines or expect financial assistance from Buildingstars to fund your business operations. Buildingstars has the right to apply any payments to past due debts for fees, expenses, purchases, interest, or any other outstanding amounts owed to them or their affiliates.
This is a fairly standard practice in franchising, as franchisors typically want to ensure timely payments and avoid taking on additional financial risk by financing franchisee operations. Prospective franchisees should be prepared to manage their finances responsibly and have sufficient capital to cover all business expenses without relying on extensions or credit from Buildingstars.