factual

What is the initial opportunity given to a Buildingstars franchisee when a customer complaint arises?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

ement Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec. VI.D. below. No part of the Management Fee is refundable.

  • C. 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 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 not charge FRANCHISEE a Non-Performance Fee. However, if after the twenty-four (24)

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars' 2025 Franchise Disclosure Document, when Buildingstars receives a complaint from a customer, the franchisee will first be given the opportunity to resolve the complaint. If the franchisee resolves the complaint within 24 hours of Buildingstars being notified, the franchisee will not be charged a Non-Performance Fee.

However, if the franchisee does not adequately remedy the complaint within the 24-hour period, Buildingstars has the right, but not the obligation, to resolve the complaint themselves. If Buildingstars resolves the complaint, the franchisee will be charged a Non-Performance Fee of $25 per hour per person needed to resolve the complaint, plus any other actual out-of-pocket expenses incurred by Buildingstars.

Buildingstars will withhold the Non-Performance Fee from the amount of billings Buildingstars collects for the franchisee. This policy incentivizes franchisees to address customer concerns promptly and effectively to avoid additional fees and maintain customer satisfaction. It also gives Buildingstars the ability to ensure customer complaints are resolved even if the franchisee does not take care of the issue in a timely manner.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.