What are the Buildingstars franchisee's obligations regarding training (Item 9) and how does this relate to the assistance provided by the franchisor (Item 11)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for the FRANCHISEE.
The initial training program is furnished after this Agreement is executed and prior to the opening of the Business and will be furnished at such time and place as BUILDINGSTARS may designate.
FRANCHISEE shall pay all transportation, lodging, meals and other expenses incurred by it in attending this program.
If FRANCHISEE does not satisfactorily complete the training program, BUILDINGSTARS shall have the right to terminate this Agreement.
Satisfactory completion of the training program is, however, no assurance of the success of the Business.
- B.
Refresher Training.
BUILDINGSTARS may provide additional or refresher training programs from time to time at a place and time as may be designated by BUILDINGSTARS.
FRANCHISEE shall pay all transportation, lodging, meals and other expenses incurred by it in attending such programs and BUILDINGSTARS shall have the right to charge a reasonable fee for such refresher training programs.
- C.
Continuing Advisory Assistance.
BUILDINGSTARS will make available such continuing advisory assistance in the operation of the franchise, rendered in such manner and available from time to time, as BUILDINGSTARS may deem appropriate.
BUILDINGSTARS reserves the right to charge a reasonable fee for such assistance as well as to be compensated for any travel expenses including but not limited to transportation, lodging, meals and other expenses BUILDINGSTARS' employees incur providing such Advisory Assistance.
- 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.
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are required to complete an initial training program. This program is provided after the Franchise Agreement is executed but before the business opens, at a location and time designated by Buildingstars. The franchisee is responsible for covering all expenses related to attending this training, including transportation, lodging, and meals. Failure to satisfactorily complete the initial training program can result in the termination of the Franchise Agreement by Buildingstars. However, successful completion of the training does not guarantee the success of the business.
Buildingstars may also offer additional or refresher training programs periodically. Franchisees are again responsible for all associated costs, such as transportation, lodging, and meals, and Buildingstars may charge a reasonable fee for these refresher programs. In addition to formal training, Buildingstars will provide continuing advisory assistance in the operation of the franchise, offered in a manner and at times deemed appropriate by Buildingstars. Buildingstars reserves the right to charge a reasonable fee for this assistance and to be compensated for any travel expenses incurred by its employees while providing advisory support.
This ongoing support is further detailed in the document, outlining that Buildingstars provides billing and collection services on behalf of the franchisee. This includes billing customers, accepting payments, collecting accounts receivable, and maintaining revenue records. Buildingstars will provide customer invoices, envelopes, and postage, as well as ongoing phone contact and reminder notices to delinquent customers. Franchisees authorize Buildingstars to handle these financial transactions, including endorsing checks and signing liens. However, Buildingstars is not responsible if a customer fails to pay, and the franchisee is ultimately responsible for collection activities on delinquent accounts.
In summary, Buildingstars places a strong emphasis on initial and ongoing training, but the franchisee bears the financial responsibility for attending these programs. Buildingstars also provides significant operational assistance through billing and collection services, which can be a valuable support system for franchisees. However, franchisees need to be aware that they retain the ultimate responsibility for managing delinquent accounts and ensuring the financial health of their business.