Does the Buildingstars franchisee authorize Buildingstars to endorse the franchisee's name on checks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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's 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to endorse their name on checks. Specifically, as part of the management services Buildingstars provides, the franchisee authorizes Buildingstars to collect payments from customers.
This authorization allows Buildingstars to endorse the franchisee's name on checks and deposit them. Buildingstars also has the authority to collect cash and other forms of payment from accounts where the franchisee has provided services or products, sign its name on liens, and take any other necessary action to fulfill the agreement's terms.
This arrangement streamlines the payment collection process for the franchisee, as Buildingstars handles billing, collections, and revenue record maintenance. However, the franchisee remains responsible for collection activities if a customer becomes delinquent in payment, and Buildingstars is not liable if a customer fails to pay.