What is the hourly rate for the Non-Performance Fee charged by Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
throughout the term of this Agreement. For example, the Royalty Fee for February is payable by March 15th. BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Royalty Fee is refundable. Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of thirty percent (30%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
- B. Non-Performance Fee. In order to encourage full attention to Customer needs, a Non-Performance Fee will be charged if BUILDINGSTARS' standards have not been followed resulting in a Customer's complaint in which BUILDINGSTARS intervenes to resolve. If BUILDINGSTARS receives a bona fide complaint from a Customer, BUILDINGSTARS will first offer FRANCHISEE an opportunity to remedy the Customer's complaint. If FRANCHISEE remedies the complaint within a twenty-four (24) hour period after BUILDINGSTARS is notified of the Customer's complaint, BUILDINGSTARS will
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a Non-Performance Fee of $25 per hour per person may be charged to the franchisee. This fee is applied if Buildingstars intervenes to resolve a customer complaint because the franchisee's service did not meet Buildingstars' standards.
Buildingstars will first offer the franchisee an opportunity to correct the issue within 24 hours of the notification of the complaint. If the franchisee successfully remedies the complaint within this timeframe, the Non-Performance Fee will not be charged. However, if the complaint remains unresolved after the 24-hour period, Buildingstars reserves the right to address the complaint themselves and subsequently charge the franchisee the Non-Performance Fee.
In addition to the hourly rate, the franchisee is also responsible for covering any actual out-of-pocket expenses incurred by Buildingstars in resolving the complaint. This Non-Performance Fee will be withheld by Buildingstars from the payments it collects on behalf of the franchisee, highlighting the importance of maintaining service quality to avoid these charges.