What deductions is Buildingstars authorized to make from payments collected from customers?

According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars is authorized to deduct several fees and costs from the payments it collects from customers on behalf of the franchisee. These deductions include fees outlined in Sections III and IV of the agreement, which likely refer to royalty fees, management fees, and other standard charges. Buildingstars can also deduct any other amounts due to them, which could cover various services or supplies they provide to the franchisee.

In addition to standard fees and dues, Buildingstars is permitted to deduct authorized insurance payments. This suggests that Buildingstars may facilitate insurance coverage for franchisees and collect premiums directly from customer payments. Buildingstars can also deduct any out-of-pocket costs they incur while enforcing payments from customers or franchisees. These costs specifically include attorney's fees and court costs, meaning that if Buildingstars has to take legal action to recover payments, the franchisee will ultimately bear those expenses.

These deductions are significant for a prospective Buildingstars franchisee because they directly impact the revenue received. Franchisees need to understand all the fees and costs that Buildingstars can deduct to accurately forecast their potential earnings. It is important for franchisees to carefully review Sections III and IV of the franchise agreement to fully understand the nature and amounts of these fees. Additionally, franchisees should clarify what constitutes 'other amounts due to Buildingstars' to avoid unexpected deductions. Understanding these deductions is crucial for managing cash flow and ensuring profitability within the Buildingstars franchise system.