Does the Buildingstars franchisee authorize Buildingstars to deposit checks?
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, the franchisee authorizes Buildingstars to deposit checks. Specifically, the franchisee authorizes Buildingstars to collect payments from customers, endorse the franchisee's name on checks, and deposit those checks. This authorization is part of the broader management services Buildingstars provides to franchisees.
This arrangement means that Buildingstars handles the billing and collection aspects of the business, relieving the franchisee of these administrative tasks. Buildingstars will bill customers, accept payments, collect receivables, and maintain revenue records. They also provide customer invoices, envelopes, and postage, as well as manage phone contact and reminder notices for delinquent customers.
However, Buildingstars is not responsible if a customer fails to pay, and the franchisee is ultimately responsible for collection activities if a customer's payment is delinquent. Buildingstars' collection activities are limited to phone contact and sending reminder notices. This division of responsibility means the franchisee needs to be prepared to handle collections if Buildingstars' initial efforts are unsuccessful.
This authorization is part of a broader agreement where Buildingstars provides billing and collection services, but the franchisee retains ultimate responsibility for ensuring payment. The franchisee also authorizes Buildingstars to collect cash and other forms of payment, sign its name on liens, and take any other action necessary to carry out the terms of the agreement.