What is a Buildingstars franchisee required to do with money collected from customers?

According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is required to immediately deliver any and all money collected from its customers to Buildingstars. This requirement ensures that Buildingstars can manage billing and collections, as well as deduct fees and other amounts owed to them.

This arrangement centralizes the financial transactions, allowing Buildingstars to maintain revenue records, collect accounts receivable, and handle customer payments. Buildingstars also provides franchisees with monthly revenue statements, offering a clear overview of their earnings. The franchisee authorizes Buildingstars to endorse checks, deposit payments, and take necessary actions to enforce the agreement's terms.

Buildingstars withholds royalty fees, management fees, non-performance fees, and any other amounts due to them from the payments collected. This includes authorized insurance payments and any out-of-pocket costs incurred by Buildingstars in enforcing payments from customers or franchisees. The remaining amount is then disbursed to the franchisee according to the procedures outlined in the Confidential Operations Manual.

This system means that franchisees must promptly turn over all customer payments to Buildingstars, relying on Buildingstars to accurately manage the billing, collections, and disbursement of funds. Franchisees need to be aware of the fees that Buildingstars will deduct from these payments and understand the procedures for receiving their share of the revenue.