Can the Insurance Program Fee for Buildingstars franchisees be increased in the future?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- F.
Insurance Program Fee.
If FRANCHISEE elects to participate in the insurance program developed for BUILDINGSTARS and its franchisees, FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Insurance Program Fee.
Currently the Insurance Program Fee is three and ½ percent (3.5%) of Gross Sales from the Business, but it may be increased in the future.
BUILDINGSTARS will withhold the Insurance Program Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D. below.
No part of the Insurance Program Fee is refundable.
BUILDINGSTARS makes this program available to qualified franchisees and will continue to do so in its sole discretion, but assumes no liability in connection therewith.
The cost of the Insurance Program Fee are subject to change. BUILDINGSTARS reserves the right to change, modify, or discontinue the Insurance Program at any time. FRANCHISEE further reserves the right to terminate FRANCHISEE'S right to remain in the Insurance Program at any time upon prior written notice to FRANCHISEE, for any reason, including, but not limited to FRANCHISEE'S failure to comply with any of the terms of this Agreement
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Insurance Program Fee can be increased in the future. If a franchisee elects to participate in the insurance program, they must pay Buildingstars an Insurance Program Fee monthly. Currently, this fee is three and one-half percent (3.5%) of Gross Sales from the Business. However, the FDD explicitly states that this fee "may be increased in the future."
Buildingstars withholds the Insurance Program Fee from the franchisee's billings. The Insurance Program Fee is non-refundable. Buildingstars offers this program to qualified franchisees at its discretion and assumes no liability.
Furthermore, Buildingstars retains the right to modify or discontinue the Insurance Program at any time. The franchisee also has the right to terminate their participation in the Insurance Program with prior written notice, for any reason, including failure to comply with the franchise agreement. Given these terms, prospective Buildingstars franchisees should consider the potential for increased costs and the possibility of program changes when evaluating this franchise opportunity.