What insurance coverages must a Buildingstars franchisee purchase and maintain?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
equired by any applicable federal, state, municipal, and local law, rule, regulation ordinance and code. FRANCHISEE shall make timely filings of all tax returns and shall pay when due all taxes levied or assessed on, and related to this Agreement and the Business. At no time is BUILDINGSTARS required to inform FRANCHISEE of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax.
- E. Insurance FRANCHISEE must purchase and continuously maintain during the term of this Agreement at a minimum, the insurance coverages that BUILDINGSTARS requires and must furnish to BUILDINGSTARS evidence of such insurance as BUILDINGSTARS shall reasonably request, together with information concerning claims and losses under such insurance. All policies of insurance required to be provided and maintained by FRANCHISEE by this Agreement must name BUILDINGSTARS, and its designated Affiliates and their successors and assigns as additional insureds (without obligation to pay the premium or any deductible amounts, all of which will be paid by FRANCHISEE), and must be carried with such responsible insurance companies and be in such form as is reasonably satisfactory to BUILDINGSTARS. BUILDINGSTARS has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require. Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests. BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs. BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE. If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.F above.
If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall
reimburse BUILDINGSTARS for the costs of obtaining said insurance. In addition, BUILDINGSTARS may charge FRANCHISEE $100 for the first day and $25 a day for each additional day FRANCHISEE does not have at l
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees must purchase and maintain the minimum insurance coverages that Buildingstars requires throughout the term of the agreement. Franchisees must also provide Buildingstars with evidence of this insurance upon request, including information about any claims or losses.
All insurance policies must name Buildingstars, its affiliates, and their successors as additional insureds; however, Buildingstars is not obligated to pay the premium or any deductible amounts. The insurance must be carried with responsible insurance companies and in a form reasonably satisfactory to Buildingstars. Buildingstars retains the right to increase the types and amounts of insurance coverage required at its discretion.
Buildingstars states that the insurance it requires represents the minimum coverage, and franchisees should consult with their own insurance agents to determine if these amounts are adequate to protect their interests. Buildingstars does not guarantee that these policies and amounts will be sufficient for the franchisee's needs. Buildingstars may also offer insurance coverage to franchisees, in which case the franchisee will be required to pay an Insurance Program Fee.
If a Buildingstars franchisee fails to obtain or maintain adequate insurance, Buildingstars has the option to obtain insurance on the franchisee's behalf, and the franchisee must reimburse Buildingstars for these costs. Additionally, Buildingstars may charge the franchisee $100 for the first day and $25 for each subsequent day the franchisee does not have the minimum required insurance. The franchisee is responsible for maintaining adequate insurance coverage at all times during and after the term of the agreement, and failure to do so does not relieve them of any contractual obligations or liabilities.