When is the initial franchise fee for Buildingstars due?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
TED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
TECHNICIAN PROGRAM
| ITEMS | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee | $995 (cash) | Lump Sum | At time of signing | Us |
| (See Item 5) | $1,295 | Franchise Agreement | ||
| Travel and living expenses during training | $0 - $1,000 | Lump sum | As incurred | Airlines, hotels, restaurants |
| Equipment (Note 1) | $1,000 - $3,000 | Lump sum or credit through supplier | As incurred and prior to opening | Suppliers and us or our Affiliates |
| Insurance | $100 - $1,000 | Lump sum | Monthly | Insurance company and/or us |
| Legal, accounting and professional fees | $250 - $1,000 | Lump sum | Prior to opening | Attorneys, accountants, etc. |
| Opening inventory (supplies) | $100 - $500 | As incurred | Prior to opening | Suppliers, or us or our Affiliates |
| Additional Funds – 3 months ( Note 2 ) | 0 – $500 | As incurred | As incurred | Employees, suppliers, utilities |
| TOTAL | $2,445 - $8,295 |
ON-SITE MANAGER PROGRAM
| ITEMS | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee (See Item 5) | $5,700 – $ 6,995 ( |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial franchise fee is due at the time of signing the Franchise Agreement. The amount of this fee varies depending on the type of franchise purchased. For the $995 franchise, the fee is due at the time of signing. For the franchise options with higher monthly contract revenue, such as $2,000 or $10,000, the initial franchise fees ranging from $5,700 to $6,995 or $33,000 to $39,000 respectively, are also due when the Franchise Agreement is signed.
This means that a prospective Buildingstars franchisee must have the full initial franchise fee amount available when they are ready to finalize the agreement. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial training and support.
It is important to note that these fees are non-refundable, as stated in Item 7. Therefore, a potential franchisee should carefully consider their decision and conduct thorough due diligence before signing the Franchise Agreement and paying the initial franchise fee to Buildingstars. Understanding the specific requirements and obligations outlined in the Franchise Agreement is crucial to avoid any financial risks or misunderstandings.