How many customer complaints within a 90-day period can lead to termination of a Buildingstars franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
(6) Fails to properly service Customers in accordance with BUILDINGSTARS' standards and within the spirit and intent of this Agreement. (By way of illustration and not limitation, a failure to properly service Customers will occur if at least three Customer complaints are made regarding the services rendered by the Business within any consecutive ninety-day period because of dissatisfaction with services provided by the Business).
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee may face termination of their franchise agreement if there are at least three customer complaints made within any consecutive 90-day period. These complaints must be related to dissatisfaction with the services provided by the Buildingstars business and indicate a failure to properly service customers according to Buildingstars' standards and the overall intent of the agreement. This clause serves as an illustration of what constitutes a failure to properly service customers and is not a limitation on other potential causes for termination.
This policy highlights the importance Buildingstars places on maintaining service quality and customer satisfaction. For a prospective franchisee, this means that consistently meeting customer expectations is crucial not only for business success but also for maintaining the franchise agreement. Franchisees should ensure they have systems in place to address and resolve customer complaints promptly to avoid reaching the threshold that could lead to termination.
It's important to note that the FDD specifies that the complaints must be related to the services rendered by the business. This implies that not all complaints, such as those regarding billing issues handled directly by Buildingstars, would necessarily count toward the three-complaint threshold. However, franchisees should still aim to resolve all complaints to maintain good customer relations and avoid any potential disputes with Buildingstars.
Prospective franchisees should carefully review the Buildingstars' standards for customer service outlined in the Confidential Operations Manual to fully understand what is expected of them. They should also inquire about the specific procedures for handling and resolving customer complaints to ensure they can effectively manage customer relations and avoid potential termination of their franchise agreement.