What collection activities is Buildingstars required to provide for delinquent customers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The only collection activities BUILDINGSTARS is required to provide are ongoing phone contact and reminder notices both
mailed and faxed to delinquent Customers on a monthly basis for such time as BUILDINGSTARS deems appropriate.
- c. Application of Payments.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars' collection activities for delinquent customers are limited. Buildingstars will provide ongoing phone contact and reminder notices, which are both mailed and faxed to delinquent customers on a monthly basis. The duration of these activities is determined by Buildingstars.
Beyond these actions, the franchisee is responsible for all other collection activities. Buildingstars is not obligated to hire attorneys or commence litigation to enforce payment of accounts by customers, beyond sending scheduled statements.
This means that if a customer fails to pay, the Buildingstars franchisee will need to take further action to recover the debt, potentially incurring additional costs for attorneys' fees, court costs, and other expenses. The franchisee bears the financial responsibility for these collection efforts.