How does Buildingstars collect the Insurance Program Fee from its franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Insurance Program Fee | 3.5% of Gross Sales | Deducted on the 15 th day of each month | See below for a more detailed explanation ( Note 5 ) |
- Note 5: Currently we are able to purchase general liability, workers compensation and employee dishonesty coverage for you. If you decide to participate in this insurance program, you will pay us by the 15th day of the month following the month in which the sales were made, an Insurance Program Fee of 3.5% of Gross Sales per month throughout the term of the Franchise Agreement. We have the right to increase the Insurance Program. We will withhold these amounts from the total billings which we collect on your behalf. The cost of the insurance is subject to change. We make this program available to qualified franchisees and will continue to do so in our sole discretion, but assume no liability in connection therewith. We reserve the right to discontinue the program at any time upon prior written notice to you.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees who participate in the insurance program will pay an Insurance Program Fee of 3.5% of Gross Sales per month. This fee is due by the 15th day of the month following the month in which the sales were made. Buildingstars withholds the Insurance Program Fee from the total billings it collects on behalf of the franchisee.
Buildingstars retains the right to increase the Insurance Program Fee, and the cost of the insurance is subject to change. The availability of the insurance program is at Buildingstars's discretion, offered only to qualified franchisees. Buildingstars assumes no liability in connection with the insurance program and reserves the right to discontinue the program at any time, providing prior written notice to the franchisee.
The table in Item 6 of the Buildingstars 2025 FDD also summarizes the Insurance Program Fee. It states that the Insurance Program Fee is 3.5% of Gross Sales and is deducted on the 15th of each month. This aligns with the information provided in Note 5, offering a clear overview of the fee's amount and payment schedule.