What did Buildingstars, Inc. do with its franchises and independent contractors before transferring them to Buildingstars Management, Inc.?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Buildingstars, Inc. was incorporated under the name of Advantage Building Services, Inc., a Missouri corporation on September 30, 1994. On March 28, 2000, the name was changed to Buildingstars, Inc. Its principal place of business is at 33 Worthington Access Drive, St. Louis, MO 63043. From 1994 until 1999, Buildingstars, Inc. operated a business similar to the Business you will operate and granted franchises and independent contractors' rights to individuals and entities that provided similar services as your Business. Buildingstars, Inc. then transferred all of its franchises and all of its independent contractors to us. All of the independent contractors either converted to franchisees or no longer operate.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars, Inc. granted franchises and independent contractor rights to individuals and entities that provided similar services to the Buildingstars business from 1994 until 1999. Buildingstars, Inc. then transferred all of its franchises and independent contractors to Buildingstars Management, Inc.
The FDD states that all of the independent contractors either converted to franchisees or no longer operate. This indicates a strategic shift within the Buildingstars organization to consolidate operations under Buildingstars Management, Inc. and transition independent contractors into a franchise model.
This transfer and conversion could have implications for prospective franchisees. It suggests a standardized operational model under Buildingstars Management, Inc., potentially offering more consistent support and brand management. However, it also means that the current franchise system is different from the pre-2000 structure, where independent contractors were part of the network. A prospective franchisee may want to inquire about the reasons for this change and how it has impacted the franchise system's performance and support structure.