How does Buildingstars collect the monthly Promissory Note payments from franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS may withhold the monthly Promissory Note payments from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. A default under the Promissory Note shall also be deemed a default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the option to collect monthly Promissory Note payments from franchisees by withholding the payment amount from the billings that Buildingstars collects on behalf of the franchisee. This process is further described in Section VI.D of the agreement.
This means that instead of the franchisee having to make a separate payment each month for the Promissory Note, Buildingstars simply deducts the amount from the revenue they collect from the franchisee's customers. This can simplify the payment process for the franchisee, as it automates the repayment of the Promissory Note.
It is important for prospective Buildingstars franchisees to carefully review Section VI.D of the Franchise Agreement to fully understand the details of this withholding process and ensure they are comfortable with the arrangement. Franchisees should also be aware that a default on the Promissory Note is considered a default under the Franchise Agreement, which could lead to termination of the franchise.