Does Buildingstars make any representation that the required insurance policies and amounts are sufficient for a franchisee's needs?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
onsible insurance companies and be in such form as is reasonably satisfactory to BUILDINGSTARS. BUILDINGSTARS has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require. Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests. BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs. BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE. If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.E above.
If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall reimburse BUILDINGSTARS for the costs of obtaining said insurance. In addition, BUILDINGSTARS may charge FRANCHISEE $100
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars does not make any representations regarding the sufficiency of its required insurance policies and amounts for a franchisee's needs. The FDD clearly states that the insurance Buildingstars requires represents the minimum coverage necessary.
Buildingstars emphasizes that franchisees should consult with their own insurance agents to determine if the kinds and amounts of coverage are adequate to protect their interests. This indicates that Buildingstars' minimum requirements may not be sufficient for every franchisee's unique circumstances.
Buildingstars retains the right to increase the types and amounts of insurance coverage it requires from franchisees at its discretion. While Buildingstars may offer an insurance program to franchisees for a fee, participation is optional, and Buildingstars assumes no liability in connection with the program. Ultimately, it is the franchisee's responsibility to maintain adequate insurance coverage throughout the term of the agreement and even after its expiration.