What are the general liability insurance limits required for a Buildingstars Technician Program franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
S collects for the FRANCHISEE.
- D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Revenue from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Administration Fee is refundable.
- E. Insurance Program Fee. FRANCHISEE is required to participate in the insurance program developed for BUILDINGSTARS and its franchisees. Although BUILDINGSTARS is obligated to pay the insurance premiums for FRANCHISEE'S coverage, FRANCHISEE is obligated to pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month followin
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are required to participate in the insurance program developed for Buildingstars and its franchisees. The franchisee is obligated to pay Buildingstars an Insurance Program Fee monthly to defray the costs incurred by Buildingstars.
Currently, the Insurance Program Fee is 3.5% of Gross Revenue from the Business. This fee provides the franchisee with worker's compensation, general liability insurance, and non-owned auto insurance. The general liability insurance includes limits of $1,000,000 per occurrence, $2,000,000 products/completed operations aggregate, and $2,000,000 aggregate.
Buildingstars does state that the insurance they require is the minimum insurance requirements and franchisees should consult with their own insurance agent to determine if the kinds and amounts of coverage are adequate to protect the franchisee's interests. Buildingstars also states that they may require the franchisee to increase the types and amounts of insurance coverage as Buildingstars may, in its sole discretion, reasonably require.