Is a Buildingstars franchisee entitled to compensation for giving back a customer account?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, FRANCHISEE has the right to give BUILDINGSTARS back any customer account so long as it gives BUILDINGSTARS at least ten (10) days prior written notice of its intent to return the customer account and FRANCHISEE shall not be entitled to any compensation for giving back the account.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is not entitled to any compensation for returning a customer account. The FDD states that a Buildingstars franchisee has the right to give back any customer account to Buildingstars, provided they give at least ten days prior written notice. However, the franchisee will not receive any compensation for doing so.
This policy means that a Buildingstars franchisee needs to carefully consider the implications before deciding to relinquish an account. While the option to return an account provides flexibility, it comes without any financial reimbursement for the business lost. This could be a significant factor for franchisees who are managing their workload or dealing with difficult clients.
It is important for prospective Buildingstars franchisees to understand this aspect of the agreement, as it directly affects their potential revenue and business operations. Franchisees should factor this into their business planning and ensure they are prepared to handle customer accounts effectively to avoid needing to return them without compensation.