Does the Buildingstars franchisee authorize Buildingstars to collect cash and other forms of payment from accounts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Management Services BUILDINGSTARS will provide FRANCHISEE with billing and collection services on its behalf. However, BUILDINGSTARS is not responsible if the Customer fails to pay nor is BUILDINGSTARS required to commence any further action other than as set forth herein if they do not pay. FRANCHISEE is responsible for any and all collection activities if a Customer is delinquent in payment.
- a. Authorization to BUILDINGSTARS. FRANCHISEE hereby authorizes BUILDINGSTARS to bill each Customer on a scheduled basis, accept payments from customer accounts, collect accounts receivable, and maintain revenue records. BUILDINGSTARS will provide Customer imprinted invoices, envelopes and postage. In addition, BUILDINGSTARS will provide ongoing phone contact and reminder notices, both mailed and faxed to delinquent 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to collect payments from customers. Specifically, the franchisee authorizes Buildingstars to bill customers, accept payments, collect accounts receivable, and maintain revenue records. Buildingstars will provide customer invoices, envelopes, and postage, as well as ongoing phone contact and reminder notices to delinquent customers. Buildingstars also provides a Monthly Revenue Statement to the franchisee.
This authorization extends to collecting cash and other forms of payment for services or products the franchisee provides. Buildingstars is also authorized to endorse the franchisee's name on checks, deposit them, sign liens, and take any other necessary action to fulfill the agreement's terms.
This arrangement centralizes billing and collections through Buildingstars, potentially streamlining operations for the franchisee. However, the franchisee remains responsible for collection activities if a customer becomes delinquent. It is important for prospective franchisees to understand the full scope of these billing and collection services, including how Buildingstars handles delinquent accounts and disburses payments to the franchisee, as detailed in the Confidential Operations Manual.