Where can I find the terms and conditions of the Buildingstars Promissory Note?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
uch time as FRANCHISEE submits said request, FRANCHISEE shall pay BUILDINGSTARS $100 for every $1,000 Monthly Contract Revenue it requested. This will serve as the first monthly payment under the Promissory Note in order to finance the Account Sales Fee. The amount of the Promissory Note will be 200% of the Monthly Contract Revenue. The Promissory Note will be payable without interest in 20 equal monthly installments. For example, if FRANCHISEE requests new customer accounts which would generate $2,000 in Monthly Contract Revenue, it would pay $200 (1/20 of $2,000 x 200%) ("Monthly Payment") and sign a Promissory Note guaranteed by the Guarantors under this Agreement which will contain substantially the same terms and conditions as set forth in E
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Buildingstars FDD, the terms and conditions of the Promissory Note are found in Exhibit II or Exhibit III, depending on the context of the note. If the note is related to new customer accounts and monthly contract revenue, the terms and conditions are detailed in Exhibit II. If the note is related to financing the Account Sales Fee, the terms and conditions are detailed in Exhibit III.
For example, if a Buildingstars franchisee requests new customer accounts that would generate $2,000 in Monthly Contract Revenue, they would pay $200 as a first monthly payment and sign a Promissory Note. This note, guaranteed by the Guarantors, will contain terms and conditions substantially similar to those in Exhibit II. The promissory note is payable without interest in twenty (20) monthly installments.
If Buildingstars offers the franchisee new customer accounts, and the franchisee accepts, they can either pay the Account Sales Fee in cash or execute a Promissory Note. This note, also guaranteed, will have terms substantially similar to those in Exhibit III. Defaulting on the Promissory Note is considered a default under the Franchise Agreement. Buildingstars may withhold monthly Promissory Note payments from the billings it collects for the franchisee, as described in Section VI.D.