Besides the financial performance representations in Item 19, does Buildingstars make any other representations about a franchisee's future financial performance?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than the preceding financial performance representations, we do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections on your future income, you should report it to the franchisor's management by contacting Chris Blase, Buildingstars Management, Inc., 33 Worthington Access Drive, St. Louis, MO 63043, (314) 991-3356, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 31–34)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, outside of the financial performance representations provided in Item 19, Buildingstars does not make any other representations about a franchisee's future financial performance, nor does it make representations about the past financial performance of company-owned or franchised outlets. Buildingstars also does not authorize its employees or representatives to make such representations, either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Buildingstars may provide the actual records of that outlet.
It is important for a potential Buildingstars franchisee to understand that any financial performance information or projections received outside of Item 19 should be reported to Buildingstars's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This ensures transparency and helps protect franchisees from potentially misleading information. The contact information for Buildingstars's management is Chris Blase, Buildingstars Management, Inc., 33 Worthington Access Drive, St. Louis, MO 63043, (314) 991-3356.
Buildingstars emphasizes that franchisees are responsible for developing their own business plans, including financial statements and projections, tailored to their specific circumstances. The company encourages prospective franchisees to consult with accounting, business, and legal advisors to assess the likely financial performance of the franchise. This proactive approach ensures that franchisees make informed decisions based on their individual situations and market conditions.
Furthermore, Buildingstars cautions that historical sales data may not accurately predict future results due to factors like inflation, deflation, and other market variables. A newly opened business should not expect to achieve sales similar to those of an established business. The janitorial services market is highly competitive and price-sensitive, so Buildingstars cannot guarantee profitability or the time required to service any account. Therefore, prospective franchisees should conduct thorough market research and develop a robust business plan to navigate these challenges and maximize their potential for success.