What assistance does Buildingstars provide before opening (Item 11) and how does this relate to the franchisee's obligations (Item 9)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ment is not executed by both parties at the expiration of this Agreement or any renewal term and BUILDINGSTARS has not given FRANCHISEE notice of its intent not to renew, this Agreement shall continue in accordance with its terms on a month-to-month basis with either party having the right to terminate on thirty (30) days prior written notice to the other party.
VI. OBLIGATIONS OF BUILDINGSTARS
A. Initial Training. BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for one of the Principal Owners and one other
person. The initial training program is furnished after this Agreement is executed and prior to the opening of the Business and will be furnished at such time and place as BUILDINGSTARS may designate. FRANCHISEE shall pay all transportation, lodging, meals and other expenses incurred by it and its employees in attending this program. If FRANCHISEE'S Principal Owners do not satisfactorily complete the training program, BUILDINGSTARS shall have the right to terminate this Agreement. Satisfactory completion of the training program is, however, no assurance of the success of the Business.
- B. Refresher Training. BUILDINGSTARS may provide additional or refresher training programs from time to time at a place and time as may be designated by BUILDINGSTARS. FRANCHISEE shall pay all transportation, lodging, meals and other expenses incurred by it and its employees in attending such programs and BUILDINGSTARS shall have the right to charge a reasonable fee for such refresher training programs.
- C. Continuing Advisory Assistance. BUILDINGSTARS will make available such continuing advisory 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. BUILDINGSTARS will collect all payments actually received and disburse the amount due to FRANCHISEE in accordance with the procedures set forth in the Confidential Operations Manual.
b. Collections. FRANCHISEE must pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from Customers.
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars provides an initial training program for franchisees before they open their business. This training covers the operation of the Buildingstars business using the System and Marks. The training is provided after the Franchise Agreement is executed, at a time and place designated by Buildingstars. The franchisee is responsible for all expenses related to attending the training, including transportation, lodging, and meals. Buildingstars has the right to terminate the Franchise Agreement if the franchisee does not satisfactorily complete the training program; however, satisfactory completion does not guarantee the success of the business.
Buildingstars also provides ongoing support in the form of refresher training programs and continuing advisory assistance. Refresher training programs may be offered periodically at Buildingstars' discretion, with the franchisee covering all associated expenses and potentially a reasonable fee. Continuing advisory assistance is made available as Buildingstars deems appropriate, and Buildingstars reserves the right to charge a reasonable fee for this assistance, as well as compensation for any travel expenses incurred by Buildingstars' employees.
The franchisee has several obligations related to opening and operating the Buildingstars business. The franchisee must begin operations within 45 days of completing the initial training program. To begin operations, the franchisee must complete the initial training program, obtain all necessary licenses and permits, provide proof of insurance coverage, acquire all necessary materials and supplies, and be in full compliance with the Franchise Agreement. The franchisee must also operate under the Buildingstars name and use the Marks and System as prescribed by Buildingstars, including filing an assumed or fictitious name where required and always using "d/b/a" after the franchisee's legal name.
Furthermore, the franchisee must comply with Buildingstars' written policies, practices, procedures, regulations, and standards, as outlined in the Confidential Operations Manual or other materials provided by Buildingstars. The franchisee is required to use equipment, products, and supplies that meet Buildingstars' standards and specifications. The franchisee must also continuously and prominently display the Marks and avoid any action that could negatively impact the public image of Buildingstars, the business, the System, or the Marks. The franchisee is not allowed to display any unauthorized business names or services at the business location.