How long does a Buildingstars franchisee have to remedy a customer complaint before a Non-Performance Fee is charged?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
throughout the term of this Agreement. For example, the Royalty Fee for February is payable by March 15th. BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Royalty Fee is refundable. Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of thirty percent (30%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
- B. Non-Performance Fee. In order to encourage full attention to Customer needs, a Non-Performance Fee will be charged if BUILDINGSTARS' standards have not been followed resulting in a Customer's complaint in which BUILDINGSTARS intervenes to resolve. If BUILDINGSTARS receives a bona fide complaint from a Customer, BUILDINGSTARS will first offer FRANCHISEE an opportunity to remedy the Customer's complaint. If FRANCHISEE remedies the complaint within a twenty-four (24) hour period after BUILDINGSTARS is notified of the Customer's complaint, BUILDINGSTARS will
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee has a 24-hour period to remedy a customer complaint before incurring a Non-Performance Fee. Buildingstars will first offer the franchisee an opportunity to address the complaint. If the franchisee successfully remedies the complaint within this 24-hour window after Buildingstars notifies them, no Non-Performance Fee will be charged.
However, if the customer's complaint remains unresolved after the 24-hour period, Buildingstars reserves the right, but not the obligation, to step in and resolve the issue themselves. In such cases, the franchisee will be charged a Non-Performance Fee. This fee is calculated at a rate of $25 per hour per person needed to resolve the complaint, in addition to any out-of-pocket expenses incurred by Buildingstars.
Buildingstars will then deduct the Non-Performance Fee from the payments it collects on behalf of the franchisee. This policy is in place to encourage Buildingstars franchisees to give full attention to customer needs and maintain the standards of service expected by Buildingstars customers. It also protects Buildingstars' brand reputation by ensuring customer issues are resolved promptly, even if it requires direct intervention.