What exhibits are included in the Buildingstars Franchise Agreement, and what do they pertain to?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is attached to this franchise disclosure document:
Exhibit A - Technician Franchise Agreement
Exhibit B - On-Site Manager Franchise Agreement
Exhibit C - Corporate Franchise Agreement
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, there are three exhibits attached. Exhibit A pertains to the Technician Franchise Agreement, Exhibit B is the On-Site Manager Franchise Agreement, and Exhibit C is the Corporate Franchise Agreement. These agreements outline the terms and conditions for each type of franchise offered by Buildingstars.
For a prospective franchisee, understanding these agreements is crucial as they detail the rights, responsibilities, and obligations of both the franchisee and Buildingstars. Each agreement caters to a different operational model, so it's important to review the one that aligns with the franchisee's intended business structure.
Specifically, the On-Site Manager Franchise Agreement grants the franchisee a nonexclusive right to use the Buildingstars system and marks within a defined metropolitan area. However, Buildingstars and its affiliates retain the right to operate and franchise similar businesses, even within the franchisee's area. This highlights the importance of understanding the competitive landscape and the potential for Buildingstars to expand its presence through other channels.
Additionally, the On-Site Manager Franchise Agreement specifies the initial franchise fee, which consists of a Base Fee of $3,995 and an MCR Fee that is 150% of the Monthly Contract Revenue. For example, an MCR Fee could be $3,000 based on $2,000 Monthly Contract Revenue. This fee structure is a critical consideration for prospective franchisees as it impacts their initial investment and ongoing financial obligations.