Is the Buildingstars Insurance Program Fee subject to change?
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' 2025 Franchise Disclosure Document, the Insurance Program Fee is subject to change. Buildingstars requires franchisees to participate in their insurance program and pay a monthly Insurance Program Fee to cover the costs incurred by Buildingstars. Currently, this fee is 3.5% of Gross Revenue from the Business.
This fee covers worker's compensation, general liability insurance with limits of $1,000,000 per occurrence, $2,000,000 products/completed operations aggregate, and $2,000,000 aggregate, and non-owned auto insurance. However, Buildingstars retains the right to modify or discontinue the Insurance Program at any time.
Buildingstars also reserves the right to terminate a franchisee's participation in the Insurance Program with prior written notice if the franchisee fails to comply with the agreement terms. Therefore, prospective franchisees should be aware that the cost of the Insurance Program Fee may fluctuate, and the terms of the program itself can be altered during the franchise agreement.