What evidence of insurance must a Buildingstars franchisee furnish to Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE must purchase and continuously maintain during the term of this Agreement at a minimum, the insurance coverages that BUILDINGSTARS requires and must furnish to BUILDINGSTARS evidence of such insurance as BUILDINGSTARS shall reasonably request, together with information concerning claims and losses under such insurance.
All policies of insurance required to be provided and maintained by FRANCHISEE by this Agreement must name BUILDINGSTARS, and its designated Affiliates and their successors and assigns as additional insureds (without obligation to pay the premium or any deductible amounts, all of which will be paid by FRANCHISEE), and must be carried with such responsible insurance companies and be in such form as is reasonably satisfactory to BUILDINGSTARS.
BUILDINGSTARS has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require.
Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests.
BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs.
BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE.
If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.F above.
If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees must furnish evidence of required insurance coverage to Buildingstars as reasonably requested, along with information concerning claims and losses under such insurance. The franchisee is obligated to purchase and continuously maintain the minimum insurance coverages that Buildingstars requires throughout the term of the agreement.
All insurance policies must name Buildingstars, its designated affiliates, and their successors and assigns as additional insureds. The franchisee is responsible for paying the premium and any deductible amounts. The insurance must be carried with responsible insurance companies and be in a form reasonably satisfactory to Buildingstars.
Buildingstars retains the right to increase the types and amounts of insurance coverage required, exercising its sole discretion reasonably. However, Buildingstars makes no guarantee that the required insurance policies and amounts are sufficient for the franchisee's needs, advising franchisees to consult their own insurance agents to determine adequate coverage. If a franchisee fails to maintain adequate insurance, Buildingstars has the option to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing Buildingstars for the costs. Buildingstars may also impose a penalty of $100 for the first day and $25 for each additional day the franchisee lacks the minimum required insurance.
Furthermore, providing proof of insurance coverage is one of the requirements that must be met before a Buildingstars franchisee can begin operations. The franchisee is deemed to have begun operations of the Business when the Principal Owners of FRANCHISEE have successfully completed the Initial Training Program; FRANCHISEE has all necessary licenses and permits; FRANCHISEE has provided proof of insurance coverage as required herein; FRANCHISEE has all necessary and required materials and supplies for the proper operation of the Business; and FRANCHISEE is in full compliance with this Agreement.