If a Buildingstars franchisee is already in good standing under a Technician Program Franchise Agreement, how does this affect the Initial Franchise Fee for the On-Site Manager Program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not already a Technician Program franchisee, you must pay the Initial Franchise Fee in full when the Franchise Agreement is signed. If you are in good standing under your Technician Program Franchise Agreement, the initial franchise fee paid under the Technician Program Franchise Agreement will be credited against the Initial Franchise Fee ("Technician Credit"). You can either pay the balance of the Initial Franchise Fee upon execution of the On-Site Manager Franchise Agreement or pay a portion of the Initial Franchise Fee and sign a promissory note for the balance upon execution of the On-Site Manager Franchise Agreement.
The following are examples of the calculation and payment of the Initial Franchise Fee:
Initial Franchise Fee - Cash
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if you are a Buildingstars franchisee in good standing under a Technician Program Franchise Agreement and are pursuing an On-Site Manager Program franchise, the initial franchise fee you paid under the Technician Program Franchise Agreement will be credited against the Initial Franchise Fee for the On-Site Manager Program. This is referred to as the "Technician Credit."
After receiving the Technician Credit, you have the option to either pay the remaining balance of the Initial Franchise Fee upon signing the On-Site Manager Franchise Agreement or pay a portion of the Initial Franchise Fee and finance the remaining balance through a promissory note. This flexibility in payment options can make it easier for existing franchisees to expand their business with Buildingstars.
For example, the initial franchise fee for the Technician Program is listed as $1,295 if financed and $6,995 if paid in cash. The initial franchise fee for the On-Site Manager Program varies. Note 2 states that the initial franchise fee for the On-Site Manager Program consists of a Base Fee of $3,995 and an MCR Fee. The MCR Fee is 150% of the Monthly Contract Revenue if you pay cash and 200% of the Monthly Contract Revenue if the Initial Franchise Fee is financed. The MCR Fee is $3,000 ($2,000 Monthly Contract Revenue x 150%).