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What happens if a Buildingstars franchisee decides they want to provide services for any Customer Account?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

We sell three separate types of franchises to operate a Business that provides quality cleaning services to the general public on commercial premises in accordance with the Marks and Systems as defined under the Franchise Agreement. The types of cleaning services the Business will offer include janitorial services, restroom sanitation, vacuuming, sweeping, dusting, waxing, buffing, trash removal, carpet cleaning and related services for commercial offices and other types of buildings. We will use our best efforts to obtain initial cleaning customers for you. We will negotiate the terms of the contract with each customer and offer you the right to provide services under such contracts ("Customer Accounts"). If you decide you want to provide services for any Customer Account, you will be fully responsible for providing the services. You may also request additional accounts from us. Our Affiliate, Buildingstars International, Inc. offered from approximately 2009 to 2019, and as of Spring 2024 is offering again, for sale master franchises that sell subfranchises which are the same as the unit franchise programs we offer to sell under this Franchise Disclosure Document.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–8)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars will negotiate the terms of the contract with each customer and offer the franchisee the right to provide services under such contracts, which are referred to as "Customer Accounts." If a franchisee decides they want to provide services for any Customer Account, they will be fully responsible for providing the services. The franchisee may also request additional accounts from Buildingstars.

This means that Buildingstars takes the lead in securing initial cleaning contracts with customers. They handle the negotiation of terms, and then offer these contracts to franchisees. This arrangement could be beneficial for new franchisees who may lack experience in sales and negotiation. However, once a franchisee accepts a Customer Account, the responsibility for fulfilling the service obligations falls entirely on them.

It's also worth noting that franchisees are not limited to only the accounts offered by Buildingstars. They can request additional accounts, which suggests an opportunity to expand their business beyond the initial assignments. This could be a significant factor for franchisees looking to grow their operations and increase their income. The level of support and process for requesting and being assigned these additional accounts would be a good question for a potential franchisee to explore with Buildingstars.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.