What is the current Insurance Program Fee for Buildingstars franchisees who elect to participate, expressed as a percentage of Gross Sales?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Insurance Program Fee. If FRANCHISEE elects to participate in the insurance program developed for BUILDINGSTARS and its franchisees, FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Insurance Program Fee. The Insurance Program Fee is currently three and one-half percent (3 ½%) of Gross Sales from the Business and is subject to change. BUILDINGSTARS will withhold the Insurance Program Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Insurance Program Fee is refundable. BUILDINGSTARS makes this program available to qualified franchisees and will continue to do so in its sole discretion, but assumes no liability in connection therewith.
The cost of the Insurance Program Fee are subject to change. BUILDINGSTARS reserves the right to change, modify, or discontinue the Insurance Program at any time. FRANCHISEE further
reserves the right to terminate FRANCHISEE'S right to remain in the Insurance Program at any time upon prior written notice to FRANCHISEE, for any reason, including, but not limited to FRANCHISEE'S failure to comply with any of the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees who choose to participate in the insurance program must pay an Insurance Program Fee. This fee is currently 3.5% of the Gross Sales from the business. The Insurance Program Fee is paid monthly, specifically by the 15th day of the month following the month in which the sales were invoiced. Buildingstars withholds this fee from the billings it collects for the franchisee.
It is important to note that the Insurance Program Fee is subject to change, and Buildingstars reserves the right to modify or discontinue the program at any time. Additionally, Buildingstars can terminate a franchisee's participation in the program with prior written notice if the franchisee fails to comply with the franchise agreement terms.
Prospective Buildingstars franchisees should consider the potential for changes in the Insurance Program Fee when evaluating the overall cost of the franchise. While participation in the insurance program is optional, franchisees must maintain minimum insurance coverage, and failure to do so could result in Buildingstars obtaining insurance on their behalf and charging the franchisee for the costs, along with additional daily fees.