Does Buildingstars guarantee customer payment when providing billing and collection services?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. In addition, BUILDINGSTARS will provide ongoing phone contact and reminder notices, both mailed and faxed to delinquent Customers on a monthly basis. Once a month BUILDINGSTARS will provide FRANCHISEE a Monthly Revenue Statement. FRANCHISEE hereby authorizes BUILDINGSTARS to collect cash and other forms of payment from accounts to which FRANCHISEE has rendered services or products, endorse FRANCHISEE'S name on and deposit checks, sign its name on liens, and take any other action necessary to carry out the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars does not guarantee customer payments even though they provide billing and collection services on behalf of the franchisee. Buildingstars is not held responsible if a customer fails to pay, and they are not obligated to take any further action beyond sending scheduled statements.
The Buildingstars franchisee is ultimately responsible for all collection activities if a customer's payment is delinquent. However, Buildingstars will provide ongoing phone contact and reminder notices, both mailed and faxed, to delinquent customers on a monthly basis, for a duration that Buildingstars deems appropriate.
Buildingstars is authorized to deduct fees, insurance payments, and out-of-pocket costs (including attorney's fees and court costs) from the payments they collect from customers to cover expenses incurred while enforcing payments. While Buildingstars handles initial billing and collection efforts, the franchisee bears the risk of customer non-payment and the responsibility for further collection efforts.