What is the franchisee authorizing Buildingstars to do with payments received from customers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- 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.
FRANCHISEE further authorizes BUILDINGSTARS to deduct from payments BUILDINGSTARS collects from the Customers the fees described in Sections III and IV of this Agreement and any other amounts due to BUILDINGSTARS, any authorized insurance payments, and any out of pocket costs (including but not limited to attorney's fees and court costs) incurred by BUILDINGSTARS in enforcing payment of accounts by Customers, FRANCHISEE or FRANCHISEE'S guarantors. BUILDINGSTARS will collect all payments actually received and disburse the amount due to FRANCHISEE in accordance with the procedures set forth in the Confidential Operations Manual.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to manage payments received from customers. Specifically, Buildingstars is authorized to bill customers, accept payments, collect accounts receivable, and maintain revenue records. Buildingstars will provide invoices, envelopes, and postage to the customers. Buildingstars will also provide ongoing phone contact and reminder notices to delinquent customers on a monthly basis. Buildingstars will also provide the franchisee with a monthly revenue statement.
Buildingstars is authorized to collect cash and other forms of payment from accounts for which the franchisee has provided services or products. Buildingstars can endorse the franchisee's name on checks, deposit checks, sign its name on liens, and take any other action necessary to fulfill the terms of the agreement.
Buildingstars is also authorized to deduct fees, insurance payments, and out-of-pocket costs (including attorney's fees and court costs) from the customer payments they collect. These deductions cover fees outlined in Sections III and IV of the agreement, any amounts owed to Buildingstars, authorized insurance payments, and any legal costs Buildingstars incurs while enforcing payments from customers, franchisees, or their guarantors. Buildingstars will then disburse the remaining amount to the franchisee, following the procedures detailed in the Confidential Operations Manual.