What collection activities is Buildingstars obligated to perform for delinquent customer accounts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ing 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. If a Customer is delinquent in payment, FRANCHISEE is responsible for any and all collection activities. BUILDINGSTARS is not obligated to hire attorneys, commence litigation, or do any acts (other than to send scheduled statements) in order to enforce payment of accounts by Customers.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars's obligation for collection activities on delinquent customer accounts is limited. Buildingstars will provide ongoing phone contact and reminder notices, both mailed and faxed, to delinquent customers on a monthly basis. The duration of these activities is determined by Buildingstars.
However, Buildingstars is not obligated to hire attorneys or commence litigation to enforce payment of accounts by customers. The franchisee is responsible for any and all collection activities if a customer is delinquent in payment. The franchisee must also pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from customers.
This means that while Buildingstars provides some initial collection efforts, the franchisee bears the ultimate responsibility for pursuing unpaid invoices. Franchisees should be prepared to handle collection activities beyond the standard notices, potentially including legal action, at their own expense. This is a significant factor to consider when evaluating the potential profitability and workload associated with a Buildingstars franchise.