What is the deadline for a Buildingstars franchisee to remedy a customer complaint to avoid a Non-Performance Fee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ement Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec. VI.D. below. No part of the Management Fee is refundable.
- C. Non-Performance Fee. In order to encourage full attention to Customer needs, a Non-Performance Fee will be charged if BUILDINGSTARS' standards have not been followed resulting in a Customer complaint in which BUILDINGSTARS intervenes to resolve. If BUILDINGSTARS receives a bona fide complaint from a Customer, BUILDINGSTARS will first offer FRANCHISEE an opportunity to remedy the Customer's complaint. If FRANCHISEE remedies the complaint within a twenty-four (24) hour period after BUILDINGSTARS is notified of the Customer's complaint, BUILDINGSTARS will not charge FRANCHISEE a Non-Performance Fee. However, if after the twenty-four (24)
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee has a 24-hour period to remedy a customer complaint after Buildingstars notifies them. If the franchisee successfully addresses and resolves the complaint within this timeframe, Buildingstars will not charge a Non-Performance Fee.
However, if the complaint remains unresolved or inadequately addressed after the 24-hour window, Buildingstars reserves the right, but not the obligation, to step in and resolve the issue themselves. In such cases, the Buildingstars franchisee will be charged a Non-Performance Fee. This fee is calculated at a rate of $25 per hour for each person needed to resolve the complaint, in addition to any out-of-pocket expenses incurred by Buildingstars during the resolution process.
Buildingstars will then deduct the Non-Performance Fee from the payments it collects on behalf of the franchisee. This policy is in place to encourage Buildingstars franchisees to give full and prompt attention to customer concerns and to maintain service standards. The Non-Performance Fee serves as a financial disincentive for neglecting customer issues and ensures that Buildingstars can take corrective action when necessary to protect its brand reputation and customer satisfaction.