Where can I find information about the Insurance Program Fee for Buildingstars franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Insurance Program Fee. If FRANCHISEE elects to participate in the insurance program developed for BUILDINGSTARS and its franchisees, FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Insurance Program Fee. The Insurance Program Fee is currently three and one-half percent (3 ½%) of Gross Sales from the Business and is subject to change. BUILDINGSTARS will withhold the Insurance Program Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Insurance Program Fee is refundable. BUILDINGSTARS makes this program available to qualified franchisees and will continue to do so in its sole discretion, but assumes no liability in connection therewith.
The cost of the Insurance Program Fee are subject to change. BUILDINGSTARS reserves the right to change, modify, or discontinue the Insurance Program at any time. FRANCHISEE further
reserves the right to terminate FRANCHISEE'S right to remain in the Insurance Program at any time upon prior written notice to FRANCHISEE, for any reason, including, but not limited to FRANCHISEE'S failure to comply with any of the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, details regarding the Insurance Program Fee can be found in Item 22, specifically in sections IV.E and IV.F, depending on the specific excerpt. If a franchisee chooses to participate in the insurance program offered by Buildingstars, they are required to pay an Insurance Program Fee. This fee is paid monthly, specifically by the 15th day of the month following the month in which the sales were invoiced. Buildingstars will then withhold this fee from the billings it collects on behalf of the franchisee.
As of the document's publication, the Insurance Program Fee is 3.5% of the franchisee's Gross Sales. However, the FDD clearly states that this fee is subject to change at Buildingstars's discretion. The document also specifies that the Insurance Program Fee is non-refundable. Buildingstars makes the insurance program available to qualified franchisees but assumes no liability in connection with the program.
It's important to note that Buildingstars retains the right to modify or discontinue the Insurance Program at any time. Additionally, Buildingstars can terminate a franchisee's participation in the program with prior written notice if the franchisee fails to comply with the terms of the franchise agreement. Franchisees should be aware that Buildingstars may also require them to increase their insurance coverage types and amounts as deemed necessary. 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 the costs, plus additional daily fees for non-compliance.