Which exhibit in the Buildingstars Franchise Disclosure Document contains the Promissory Note?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
III. INITIAL FRANCHISE FEE
The Initial Franchise Fee is One Thousand Two Hundred Ninety-Five Dollars ($1,295) payable upon execution of this Agreement in the following manner:
Down payment of Six Hundred Ninety-Five Dollars ($695) upon execution of this Agreement;
Six
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, Exhibit I contains the form for the Promissory Note. Specifically, the initial franchise fee is $1,295, with a down payment of $695 due upon signing the agreement. The remaining $600 is represented by a Promissory Note, detailed in Exhibit I.
The note is payable in six monthly installments of $100 each, without interest. The first payment is due 90 days after the franchise agreement is signed, specifically on the fifteenth day of that month. Buildingstars has the option to deduct these monthly note payments from the franchisee's billings, as described in Section VI.D of the FDD.
It's important to note that defaulting on the Promissory Note is considered a default under the entire Franchise Agreement. This means that if a Buildingstars franchisee fails to make timely payments on the note, Buildingstars has grounds to terminate the franchise agreement. Therefore, prospective franchisees should carefully review Exhibit I and understand the terms and conditions of the Promissory Note before signing the agreement.