How does the Initial Franchise Fee for a Buildingstars Technician Program (Item 5) relate to the estimated initial investment for the same program (Item 7)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
, 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 ($2,000 in Monthly Contract Revenue) | Lump Sum | At time of signing Franchise Agreement | Us |
| Travel and living expenses during training | $0 - $1,000 | Lump sum | As incurred | Airlines, hotels, restaurants |
| Equipment (Note 1) | $1,200 - $3,000 | Lump sum or credit through supplier | As incurred and prior to opening | Suppliers, us or our Affiliates |
| Insurance | $100 - $1,000 | Lump sum | Monthly | Insurance company and/or us |
| Legal, accounting and professional fees | $500 - $1,000 | Lump sum | Prior to opening | Attorneys, accountants, etc. |
| Opening inventory (supplies) | $200 – $600 | As incurred | Prior to opening | Suppliers, or us or our Affiliates |
| Additional Funds – 3 months ( Note 2 ) | $0 - $500 | As inc |
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Initial Franchise Fee for a Technician Program is a component of the total estimated initial investment. Item 5 details the specifics of the Initial Franchise Fee, while Item 7 provides an overview of the total estimated initial investment, which includes the Initial Franchise Fee along with other expenses.
For the Technician Program, the Initial Franchise Fee is $1,295 if financed or $995 if paid in cash. The financed option requires a down payment of $695 with the remaining $600 paid in six monthly installments of $100. Item 7 includes the Initial Franchise Fee as part of the total estimated initial investment for an On-Site Manager Program, which ranges from $5,700 to $6,995, based on $2,000 in Monthly Contract Revenue.
Item 7 also lists other estimated initial investment expenses, such as travel and living expenses during training ($0 - $1,000), equipment ($1,200 - $3,000), insurance ($100 - $1,000), legal and accounting fees ($500 - $1,000), opening inventory ($200 - $600), and additional funds for three months ($0 - $500). The total estimated initial investment for the On-Site Manager Program ranges from $7,700 to $14,095. Note 1 in Item 7 mentions that the amount and type of cleaning equipment needed depends on the type of Franchise Program purchased. For a Technician Program, the start-up package of equipment and supplies can be purchased from Buildingstars or its affiliate, with the price ranging from $1,000 to $1,050, as detailed in Item 5.
Prospective franchisees should carefully review both Item 5 and Item 7 to understand how the Initial Franchise Fee fits into the broader context of the initial investment. Understanding these costs is crucial for financial planning and ensuring sufficient capital to start the Buildingstars franchise.