What does the Buildingstars franchisee authorize Buildingstars to do regarding customer 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's 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to manage various aspects of customer accounts on their behalf. Specifically, Buildingstars is authorized to bill each customer on a scheduled basis, accept payments from these customer accounts, collect accounts receivable, and maintain revenue records. Buildingstars will also provide customer-imprinted invoices, envelopes, and postage, as well as ongoing phone contact and reminder notices to delinquent customers via mail and fax on a monthly basis. Buildingstars also provides a Monthly Revenue Statement to the franchisee.
This authorization extends to collecting cash and other forms of payment from accounts where the franchisee has provided services or products. Buildingstars is also authorized to endorse the franchisee's name on and deposit checks, sign its name on liens, and take any other action necessary to fulfill the terms of the Franchise Agreement. This comprehensive authorization streamlines the billing and collection process, potentially reducing the administrative burden on franchisees.
However, it's important to note that while Buildingstars provides billing and collection services, they are not responsible if a customer fails to pay. The franchisee remains responsible for all collection activities if a customer becomes delinquent in payment, with Buildingstars only obligated to provide ongoing phone contact and reminder notices. This division of responsibility highlights the franchisee's ultimate accountability for ensuring payment from their customers.