Is the Insurance Program Fee refundable for Buildingstars franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. 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. The Insurance Program Fee is currently three and one-half percent (3 ½%) of Gross Sales from the Business and is subject to change. 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 is not refundable. If a franchisee chooses to participate in the insurance program offered by Buildingstars, they must pay an Insurance Program Fee, which is currently 3.5% of Gross Sales from the Business. This fee is collected monthly along with other fees such as the Administration Fee and Royalty Fee. Buildingstars withholds the Insurance Program Fee from the billings it collects for the franchisee.
Buildingstars makes the insurance program available to qualified franchisees at its discretion and assumes no liability in connection with the program. 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.
Franchisees also have the right to terminate their participation in the Insurance Program by providing prior written notice to Buildingstars. However, regardless of whether a franchisee remains in the program or not, the Insurance Program Fee itself is non-refundable.