What are the Buildingstars franchisee's obligations regarding customer service (Item 9) and how does this relate to the assistance provided by the franchisor (Item 11)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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- 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.
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- 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.
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- 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.
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- 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.
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees have several obligations related to customer service. Buildingstars franchisees must ensure their employees treat customers fairly, honestly, ethically, and without discrimination. They are prohibited from withholding important information or selling unnecessary services to customers. Franchisees must also avoid deceptive advertising, only make authorized promises, maintain positive customer relations, and provide competent, prompt, courteous, and knowledgeable service, adhering to Buildingstars's minimum standards outlined in the Confidential Operations Manual.
Buildingstars provides assistance to franchisees in several ways. Buildingstars may make periodic quality control and customer relations visits to the franchisee's customer account locations. However, Buildingstars retains the right to discontinue a franchisee's service to a customer account if they determine the service is inadequate, considering factors like customer complaints, unresponsiveness, allegations of theft or breakage, or failure to complete jobs professionally. In such cases, Buildingstars is not obligated to replace the customer account. Buildingstars also offers continuing advisory assistance for franchise operations, though they may charge a reasonable fee for this service and associated travel expenses.
Furthermore, Buildingstars provides billing and collection services to franchisees through a subcontract with Buildingstars Operations, Inc. This includes billing customers, accepting payments, collecting receivables, maintaining revenue records, providing customer invoices, and managing delinquent accounts with phone contact and reminder notices. Buildingstars will provide the franchisee with a monthly revenue statement. However, Buildingstars is not responsible if a customer fails to pay and is not required to take further action beyond what is outlined in the agreement, leaving the franchisee responsible for further collection activities.
These obligations and assistance mechanisms highlight the importance of customer service in the Buildingstars franchise system. Franchisees are expected to maintain high standards of service, while Buildingstars provides support through quality control, advisory services, and billing/collection assistance. However, franchisees should be aware that Buildingstars can terminate a customer account if service is deemed inadequate and that the franchisee bears the ultimate responsibility for debt collection.