What business did Buildingstars, Inc. operate before transferring its franchises?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Buildingstars, Inc. was incorporated under the name of Advantage Building Services, Inc., a Missouri corporation on September 30, 1994. On March 28, 2000, the name was changed to Buildingstars, Inc. Its principal place of business is at 33 Worthington Access Drive, St. Louis, MO 63043. From 1994 until 1999, Buildingstars, Inc. operated a business similar to the Business you will operate and granted franchises and independent contractors' rights to individuals and entities that provided similar services as your Business. Buildingstars, Inc. then transferred all of its franchises and all of its independent contractors to us. All of the independent contractors either converted to franchisees or no longer operate. Buildingstars, Inc. has not offered or sold any franchises in any other line of business as of the date of this franchise disclosure document, and except as explained above, does not have nor does it offer or sell any franchises similar to your franchise. Buildingstars, Inc. is also the owner of the Marks as defined below and licenses to us the right to use and sublicense the Marks to you.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars, Inc. was involved in a similar business to the one franchisees operate today. From 1994 to 1999, Buildingstars, Inc. granted franchises and independent contractor rights to individuals and entities providing services similar to those offered by current Buildingstars franchisees.
This means that the company has a long history in the commercial cleaning industry, dating back to the mid-1990s. This prior experience could be beneficial for franchisees as Buildingstars has a deep understanding of the market and operational challenges.
However, Buildingstars, Inc. transferred all of its franchises and independent contractors to Buildingstars Management, Inc. It is important to note that all independent contractors either became franchisees or ceased operations. Buildingstars, Inc. no longer offers or sells franchises in any other line of business, ensuring its focus remains on the Buildingstars franchise system. This transfer suggests a strategic shift in the company's structure, consolidating franchising activities under Buildingstars Management, Inc.