When is the Insurance Program Fee due for Buildingstars franchisees?
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 due by the 15th day of the month following the month in which the sales were made. This means that if a Buildingstars franchisee makes sales in January, the Insurance Program Fee for those sales is due on February 15th. The fee is 3.5% of Gross Sales. Buildingstars withholds the Insurance Program Fee from the total billings it collects on behalf of the franchisee.
Buildingstars offers this insurance program, which includes general liability, workers compensation, and employee dishonesty coverage, to qualified franchisees at its sole discretion and can discontinue the program with prior written notice. The cost of the insurance is subject to change. While Buildingstars makes this program available, it assumes no liability in connection with it.
This arrangement is fairly common in franchising, where franchisors often negotiate group insurance rates for their franchisees. By participating in the program, Buildingstars franchisees benefit from potentially lower insurance costs and the convenience of having the fees automatically deducted from their billings. However, franchisees should be aware that Buildingstars can change or discontinue the program, and the cost of insurance may fluctuate.