What fees and costs can Buildingstars deduct from customer payments?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
elinquent Customers on a monthly basis. Once a month BUILDINGSTARS will provide FRANCHISEE a Monthly Revenue Statement. FRANCHISEE hereby authorizes BUILDINGSTARS to collect cash and other forms of payment from accounts to which FRANCHISEE has rendered services or products, endorse FRANCHISEE'S name on and deposit checks, sign its name on liens, and take any other action necessary to carry out the terms of this Agreement.
FRANCHISEE further authorizes BUILDINGSTARS to deduct from payments BUILDINGSTARS collects from the Customers the fees described in Sections III and IV of this Agreement and any other amounts due to BUILDINGSTARS, any authorized insurance payments, and any out-of-pocket costs (including but not limited to attorney's fees and court costs) incurred by BUILDINGSTARS in enforcing payment of accounts by Customers, FRANCHISEE or FRANCHISEE'S guarantors. BUILDINGSTARS will collect all payments actually received and disburse the amount due to FRANCHISEE in accordance with the procedures set forth in the Confidential Operations Manual.
b. Collections. FRANCHISEE must pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from Customers. If a Customer is delinquent in payment, FRANCHISEE is responsible for any and all collection activities. BUILDINGSTARS is not obligated to hire attorneys, commence litigation, or do any acts (other than to send scheduled statements) in order to enforce payment of accounts by Customers.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 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 described in Sections III and IV of the Franchise Agreement, which likely cover ongoing royalty or service fees. Buildingstars can also deduct any other amounts that the franchisee owes to Buildingstars.
Additionally, Buildingstars can deduct authorized insurance payments if the franchisee participates in Buildingstars's insurance program. Buildingstars may also deduct out-of-pocket costs, including attorney's fees and court costs, if Buildingstars incurs these expenses while enforcing payment of accounts by customers, the franchisee, or the franchisee's guarantors.
Furthermore, if a Buildingstars franchisee fails to adequately address a customer complaint within a 24-hour period after Buildingstars is notified, Buildingstars has the right to resolve the complaint themselves and charge the franchisee a Non-Performance Fee. This fee is $25 per hour per person needed to resolve the complaint, plus any other actual out-of-pocket expenses incurred, which Buildingstars will withhold from the franchisee's billings.