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What are the Buildingstars franchisee's obligations regarding compliance with the system (Item 9) and how does this relate to the assistance provided by the franchisor (Item 11)?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

ment, products and supplies in the operation of the Business that meet BUILDINGSTARS' standards and specifications as set forth in the Confidential Operations Manual.

    1. FRANCHISEE shall continuously and prominently display the Marks in connection with the Business, and will not take or fail to take any action, the result of which might detract from the public image of BUILDINGSTARS, the Business, the System or the Marks. FRANCHISEE shall not display or permit to be displayed at the Business any business name or service not authorized hereunder.
    1. FRANCHISEE shall at all times maintain minimum levels of inventory and supplies in the amount and type as may be directed by BUILDINGSTARS from time to time or as may be specified in the Confidential Operations Manual.
    1. All of FRANCHISEE'S business dealings will be governed by the highest professional standards of honesty, integrity, fair dealing and ethical conduct. FRANCHISEE will do nothing that would tend to discredit, dishonor, reflect adversely upon, or in any manner injure the reputation of BUILDINGSTARS, its other franchisees and its Affiliates. FRANCHISEE shall pay when due all of its own obligations including but not limited to taxes whatsoever incurred with the purchase and operation of the Business.
    1. FRANCHISEE shall at all times faithfully, honestly and diligently perform the obligations hereunder, use its best efforts to promote and enhance the Business, and shall not engage in any business or other activity that will conflict with the FRANCHISEE'S obligations hereunder. FRANCHISEE or its Principal Owners agree to participate personally in the direct operation of the Business on a full time basis.
    1. FRANCHISEE agrees to and shall take all steps as are necessary to ensure that its employees treat all Customers fairly and provide services hereunder in an honest, ethical, and nondiscriminatory manner. Further, FRANCHISEE shall not withhold any material information from its Customers or attempt to sell any service to them that FRANCHISEE believes, in its good faith estimation, is not needed.
    1. FRANCHISEE shall not advertise in a deceptive, misleading, or unethical manner; shall only make those promises, representations, and guarantees to Customers, and others at the Business authorized by BUILDINGSTARS; preserve good Customer relations; render competent, prompt, courteous, and knowledgeable service; and meet such minimum standards as BUILDINGSTARS may establish from time to time in the Confidential Operations Manual.
    1. FRANCHISEE recognizes that it is not permitted to use the System or Marks in connection with the sale of any products or services other than the cleaning business. If a Customer requests that FRANCHISEE render any services or sell any products that are not of the type that is

normally rendered in connection with the System, FRANCHISEE must first notify BUILDINGSTARS and obtain approval from BUILDINGSTARS. BUILDINGSTARS will not unreasonably object to FRANCHISEE'S request provided that the services do not interfere with the services that FRANCHISEE renders in connection with the franchise, the services and products are in no way associated with the Marks and System, FRANCHISEE is capable of providing the products and services in a good and workmanlike manner, and the Customer is fully apprised that the services or products are not being rendered in connection with the franchise. BUILDINGSTARS retains the right to object to any future requests and the failure to object to any request shall not prohibit BUILDINGSTARS from objecting to any future requests.

    1. In the event that FRANCHISEE wishes to advertise its Business, FRANCHISEE must submit all of its own advertising and sale promotion materials (including Internet advertising) to BUILDINGSTARS for prior consent. If BUILDINGSTARS does not consent to the advertising within 20 days after receipt of the advertising, said advertising is deemed acceptable. FRANCHISEE shall not advertise or use in advertising or other form of promotion, the Marks without the appropriate copyright, trademark, and service mark registration symbols for those marks which are registered and without BUILDINGSTARS' consent.
  • D. Licensure; Compliance with Laws At all times FRANCHISEE shall comply with all federal, state, municipal, and local laws, rules, regulations, ordinances, and codes applicable and related to this Agreement, the Business, and all aspects of the conduct of the Business including but not limited to the Americans with Disabilities Act ("ADA") and OSHA in all respects, and nothing contained herein or in the Confidential Operations Manual shall be construed as or implied as imposing any obligation on BUILDINGSTARS or its Affiliates in relation to the ADA or OSHA. FRANCHISEE shall obtain all licenses and permits required by any applicable federal, state, municipal, and local law, rule, regulation ordinance and code. FRANCHISEE shall make timely filings of all tax returns and shall pay when due all taxes levied or assessed on, and related to this Agreement and the Business. At no time is BUILDINGSTARS required to inform FRANCHISEE of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax.
  • E. Insurance FRANCHISEE must purchase and continuously maintain during the term of this Agreement at a minimum, the insurance coverages that BUILDINGSTARS requires and must furnish to BUILDINGSTARS evidence of such insurance as BUILDINGSTARS shall reasonably request, together with information concerning claims and losses under such insurance. All policies of insurance required to be provided and maintained by FRANCHISEE by this Agreement must name BUILDINGSTARS, and its designated Affiliates and their successors and assigns as additional insureds (without obligation to pay the premium or any deductible amounts, all of which will be paid by FRANCHISEE), and must be carried with such responsible insurance companies and be in such form as is reasonably satisfactory to BUILDINGSTARS. BUILDINGSTARS has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require. Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests. BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs. BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE. If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.F above.

If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall

reimburse BUILDINGSTARS for the costs of obtaining said insurance.

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, franchisees have several obligations to comply with the Buildingstars system. Franchisees must maintain minimum inventory levels as directed by Buildingstars and conduct all business dealings with honesty and integrity. They are required to perform their obligations diligently, promote the business, and avoid conflicts of interest. Franchisees must also treat customers fairly, avoid withholding information or selling unnecessary services, and refrain from deceptive advertising. They must also preserve customer relations and meet minimum standards set by Buildingstars in the Confidential Operations Manual.

Specifically, Buildingstars franchisees are not allowed to use the Buildingstars system or marks for any business other than the cleaning business. If a customer requests services outside the normal scope of the Buildingstars system, the franchisee must first notify Buildingstars and obtain approval. Buildingstars will generally approve such requests if they do not interfere with the core franchise services, are not associated with the Buildingstars marks, are performed competently, and the customer understands they are not part of the franchised services. Buildingstars retains the right to object to future requests, and approval of one request does not obligate them to approve others.

Furthermore, franchisees must submit all advertising and sales promotion materials to Buildingstars for prior consent. If Buildingstars does not respond within 20 days, the advertising is deemed acceptable. Franchisees must comply with all applicable laws, including the Americans with Disabilities Act (ADA) and OSHA, and obtain all necessary licenses and permits. Buildingstars is not obligated to inform franchisees of any laws or regulations. The franchisee has the sole rights and responsibilities for the manner and means by which the day-to-day operation of the Business is determined and conducted and for achieving its business objectives. Subject to any approval, inspection and enforcement rights reserved to BUILDINGSTARS, these rights and responsibilities include the employment, supervision, setting the conditions of employment and discharge for its employees at the Business, daily maintenance, safety concerns, and the achievement of conformity with the System.

Regarding assistance from Buildingstars, the FDD excerpt indicates that Buildingstars will replace initial or new customer accounts under certain conditions, such as the customer ceasing business or moving outside the territory, within the first six months of service, provided the franchisee is in compliance with the Franchise Agreement. In such cases, Buildingstars will offer a new customer account or increase an existing one with equivalent Monthly Contract Revenue. However, the franchisee is not entitled to refunds of Account Sales Fees already paid and must continue paying any outstanding Account Sales Fee. Buildingstars also subcontracts with its Affiliate, Buildingstars Operations, Inc., to provide services.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.