Is Green Sky Southwest, Inc. owned by an officer of Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ed on a franchisee's purchase of particular products or services or use of a particular supplier.
The purchase of products from approved sources will represent approximately 60% of your overall purchases in opening the franchise and 5% of your overall purchases in operating the franchise. Our Affiliate, Green Sky Southwest, Inc., sells cleaning supplies and equipment to franchisees. During the fiscal year 2024, Green Sky Southwest, Inc. had gross revenues of $$328,844.42 from product sales to franchisees.
Except for Green Sky Southwest, Inc., a supplier that is owned by an officer of ours, none of the other suppliers are owned by any of our officers. We and our Affiliates may derive revenue from your purchases or lease and we and they reserve the right to do so in the future. Except as provided above, we and our Affiliates are not suppliers of other products or services. We or our Affiliates may decide to become a supplier of other goods, products and services in
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–19)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Green Sky Southwest, Inc. is indeed owned by an officer of Buildingstars. Specifically, the document states that Green Sky Southwest, Inc. is an affiliate that sells cleaning supplies and equipment to Buildingstars franchisees.
This arrangement has a direct financial impact on franchisees. The FDD reveals that during the fiscal year 2024, Green Sky Southwest, Inc. generated gross revenues of $328,844.42 from sales to Buildingstars franchisees. Furthermore, the purchase of products from approved sources, which includes Green Sky Southwest, Inc., accounts for approximately 60% of a franchisee's initial investment and 5% of their ongoing operational purchases.
This relationship between Buildingstars and Green Sky Southwest, Inc. means that Buildingstars and its officers benefit financially from franchisee purchases of cleaning supplies and equipment. While the FDD states that Buildingstars does not negotiate purchase arrangements with suppliers for the benefit of the franchisee, they reserve the right to do so in the future. This could be a point of consideration for potential franchisees, as it highlights a potential conflict of interest where the franchisor benefits directly from franchisee expenditures.