When is the Insurance Program Fee deducted for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Insurance Program Fee | 3.5% of Gross Sales | Deducted on the 15 th day of each month | See below for a more detailed explanation ( Note 5 ) |
- Note 5: Currently we are able to purchase general liability, workers compensation and employee dishonesty coverage for you. If you decide to participate in this insurance program, you will pay us by the 15th day of the month following the month in which the sales were made, an Insurance Program Fee of 3.5% of Gross Sales per month throughout the term of the Franchise Agreement. We have the right to increase the Insurance Program. We will withhold these amounts from the total billings which we collect on your behalf. The cost of the insurance is subject to change. We make this program available to qualified franchisees and will continue to do so in our sole discretion, but assume no liability in connection therewith. We reserve the right to discontinue the program at any time upon prior written notice to you.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Insurance Program Fee is deducted on the 15th of each month. Specifically, the Insurance Program Fee is 3.5% of Gross Sales. Buildingstars withholds this fee from the total billings collected on behalf of the franchisee.
This means that as a Buildingstars franchisee, if you participate in the insurance program, 3.5% of your gross sales will be automatically deducted from your collected billings each month. This deduction occurs on the 15th of the month.
It is important to note that Buildingstars has the right to increase the Insurance Program Fee and can discontinue the program at any time with prior written notice. The cost of insurance is subject to change, and the program is available to qualified franchisees at Buildingstars's sole discretion. Buildingstars assumes no liability in connection with the insurance program.