What is the estimated range for additional funds needed for the first 3 months of operating a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
TED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
TECHNICIAN PROGRAM
| ITEMS | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee | $995 (cash) | Lump Sum | At time of signing | Us |
| (See Item 5) | $1,295 | Franchise Agreement | ||
| Travel and living expenses during training | $0 - $1,000 | Lump sum | As incurred | Airlines, hotels, restaurants |
| Equipment (Note 1) | $1,000 - $3,000 | Lump sum or credit through supplier | As incurred and prior to opening | Suppliers and us or our Affiliates |
| Insurance | $100 - $1,000 | Lump sum | Monthly | Insurance company and/or us |
| Legal, accounting and professional fees | $250 - $1,000 | Lump sum | Prior to opening | Attorneys, accountants, etc. |
| Opening inventory (supplies) | $100 - $500 | As incurred | Prior to opening | Suppliers, or us or our Affiliates |
| Additional Funds – 3 months ( Note 2 ) | 0 – $500 | As incurred | As incurred | Employees, suppliers, utilities |
| TOTAL | $2,445 - $8,295 |
ON-SITE MANAGER PROGRAM
| ITEMS | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee (See Item 5) | $5,700 – $ 6,995 ($2,000 in Monthly Contract Revenue) | Lump Sum | At time of signing Franchise Agreement | Us |
| Travel and living expenses during training | $0 - $1,000 | Lump sum | As incurred | Airlines, hotels, restaurants |
| Equipment (Note 1) | $1,200 - $3,000 | Lump sum or credit through supplier | As incurred and prior to opening | Suppliers, us or our Affiliates |
| Insurance | $100 - $1,000 | Lump sum | Monthly | Insurance company and/or us |
| Legal, accounting and professional fees | $500 - $1,000 | Lump sum | Prior to opening | Attorneys, accountants, etc. |
| Opening inventory (supplies) | $200 – $600 | As incurred | Prior to opening | Suppliers, or us or our Affiliates |
| Additional Funds – 3 months ( Note 2 ) | $0 - $500 | As incurred | As incurred | Employees, suppliers, utilities |
| TOTAL | $7,700 - $14,095 |
CORPORATE PROGRAM
| ITEMS | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE | |-----------------------------------------------|------------------------------------------------------------------|-------------------------------------|-------------------------------------------|-------------------------------------| | Initial Franchise Fee (See Item 5) | $33,000 – $39,000 ($10,000 in Monthly Contract Revenue) | Lump sum | At time of signing Franchise Agreement | Us | | Travel and living expenses during training | $0 - $1,000 | Lump sum | As incurred | Airlines, hotels, restaurants | | Equipment (Note 1) | $2,500 – $5,000 | Lump sum or credit through supplier | As incurred and prior to opening | Suppliers, us or our Affiliates | | Insurance | $300 – $1,000 | Lump sum | Monthly | Insurance company and/or us | | Legal, accounting and professional fees | $500 – $1,500 | Lump sum | Prior to opening | Attorneys, accountants, etc. | | Opening inventory (supplies) | $300 – $700 | As incurred | Prior to opening | Suppliers, us, or our Affiliates | | Additional Funds – 3 months ( Note 2 ) | $3,000 – $5,000 | As incurred | As incurred | Employees, suppliers, utilities | | TOTAL | $39,600 - $53,200 | | | | These expenses are merely estimates.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the amount of additional funds needed for the first 3 months of operation varies based on the franchise program selected. For the $2,000 Monthly Contract Revenue program, the estimated additional funds range from $0 to $500. The $10,000 Monthly Contract Revenue program requires a significantly larger investment, with additional funds estimated between $3,000 and $5,000. For the cash program, the additional funds needed are estimated to be between $0 and $500. These funds are intended to cover expenses such as employee wages, supplier costs, and utility bills.
These figures represent Buildingstars's best estimate, and the actual amount may differ. The FDD emphasizes that these are only estimates, and a prospective franchisee's actual expenses could be higher. Several factors can influence these costs, including the franchisee's management skills, local economic conditions, market competition, and the ability to reach projected sales levels. Buildingstars recommends that potential franchisees carefully review these estimates with a business advisor before making a final decision.
It is important to note that these additional funds do not cover certain fees, such as Account Sales Fees, Management Fees, or Non-Performance Fees, nor do they include any salary or draw for the owner. This means that franchisees should budget separately for these expenses. The FDD also clarifies that Buildingstars does not offer financing for these additional funds, except for the Initial Franchise Fee and the Account Sales Fee, so franchisees will need to secure their own funding through savings or external loans.