What insurance coverages must a Buildingstars franchisee purchase and maintain during the term of the Franchise Agreement?
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–19)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees must purchase and maintain the minimum insurance coverages that Buildingstars requires throughout the term of the Franchise Agreement. Franchisees must provide Buildingstars with evidence of this insurance, including information on claims and losses. All insurance policies must name Buildingstars and its affiliates as additional insureds; however, the franchisee is responsible for paying the premium and any deductible amounts. Buildingstars has the right to increase the types and amounts of insurance coverage required at its discretion.
Buildingstars notes that the required insurance is the minimum, and franchisees should consult their own insurance agent to determine if the coverage is adequate for their needs. Buildingstars makes no guarantees that the policies and amounts are sufficient for the franchisee's needs. Buildingstars may offer insurance coverage to franchisees from time to time. If a franchisee is eligible and wishes to participate in such insurance coverage, 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 behalf of the franchisee, and the franchisee must reimburse Buildingstars for these costs. Additionally, Buildingstars may charge the franchisee $100 for the first day and $25 for each additional 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.