When is the Buildingstars Insurance Program Fee due each month?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
unt of billings BUILDINGSTARS collects for the FRANCHISEE.
- D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Revenue from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Administration Fee is refundable.
- E. Insurance Program Fee. FRANCHISEE is required to participate in the insurance program developed for BUILDINGSTARS and its franchisees. Although BUILDINGSTARS is obligated to pay the insurance premiums for FRANCHISEE'S coverage, FRANCHISEE is obligated to pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month followin
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Insurance Program Fee is due monthly, specifically by the fifteenth (15th) day of the month following the month in which the sales were invoiced. This means that if a Buildingstars franchisee's sales were invoiced in February, the Insurance Program Fee for those sales would be due by March 15th. Buildingstars withholds this fee from the billings it collects on behalf of the franchisee.
The Insurance Program Fee is designed to cover the costs Buildingstars incurs for providing insurance coverage to its franchisees. Currently, this fee is set at three and one-half percent (3 ½%) of the franchisee's Gross Revenue from the Business. This fee provides the franchisee with Worker's Compensation, General Liability Insurance with specified limits, and non-owned auto insurance.
It is important to note that the cost of the Insurance Program Fee is subject to change, and Buildingstars reserves the right to modify or discontinue the program at any time. While Buildingstars is obligated to pay the insurance premiums, the franchisee is responsible for paying the Insurance Program Fee. The insurance coverage provided through this program is considered the minimum requirement, and franchisees are encouraged to consult with their own insurance agent to determine if additional coverage is necessary to adequately protect their interests.