In the Buildingstars franchise agreement, what exhibit contains the form for the Promissory Note?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
filiates 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 Buildingstars's 2025 Franchise Disclosure Document, the form for the Promissory Note is found in Exhibit I of the franchise agreement. This note is used to finance $600 of the initial franchise fee. The total initial franchise fee is $1,295, with a down payment of $695 due upon the execution of the agreement.
The Promissory Note is payable without interest in six monthly installments of $100 each. The first installment is due on the fifteenth day of the month, 90 days after the agreement is executed. Buildingstars has the option to withhold the monthly note payments from the billings they collect on behalf of the franchisee.
A default on the Promissory Note is considered a default under the franchise agreement. This means that if a franchisee fails to make timely payments on the note, Buildingstars can take action, including terminating the franchise agreement. Therefore, prospective franchisees should carefully consider their ability to meet these payment obligations before signing the agreement.