What is the maximum transfer fee for a Buildingstars franchise?

According to Buildingstars's 2025 Franchise Disclosure Document, the transfer fee is capped at $4,000. However, the actual transfer fee will be the lesser of $4,000 or 10% of the total sales price of the franchise interest being transferred, including any down payments or amounts financed in place of the franchise fee. In any case, the transfer fee will not be less than $1,500.

For a prospective Buildingstars franchisee, this means that if you decide to sell your franchise, you will need to pay Buildingstars a transfer fee. The exact amount will depend on the sale price of your franchise, but it will not exceed $4,000. This fee covers Buildingstars's administrative costs associated with the transfer, such as reviewing the transferee's qualifications and updating the franchise agreement.

It's important to note that Buildingstars has the right to approve or disapprove any potential transferee. They will assess whether the transferee meets the standards for new franchisees, has good moral character, a good credit rating, sufficient financial resources, and competent qualifications. The transferee will also need to execute a new Franchise Agreement with Buildingstars. This ensures that the new franchisee is capable of operating the Buildingstars franchise successfully and maintains the brand's standards.

This transfer fee structure is fairly typical in the franchise industry. It allows the franchisor to recoup some of their costs associated with the transfer while also ensuring that they maintain control over who becomes a franchisee. Prospective franchisees should factor this potential transfer fee into their financial planning when considering purchasing a Buildingstars franchise.