What is the maximum transfer fee for a Buildingstars franchise transfer?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
fications. The transferee must execute a new Franchise Agreement with the standard terms and conditions then being offered in the FRANCHISEE'S state by BUILDINGSTARS and the owners must execute a personal guarantee. Notwithstanding anything herein to the contrary, under n
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee who transfers their interest will be charged a transfer fee. The fee is the lesser of two amounts: $4,000, or 10% of the total sales price of the franchise interest being transferred. This sales price includes any down payments or amounts financed in place of the franchise fee. However, the transfer fee will never be less than $1,500.
In practical terms, this means that if a Buildingstars franchisee sells their business for $30,000, the transfer fee would be 10% of that, or $3,000. If the sale price were $50,000, the transfer fee would be capped at $4,000. Conversely, if the sale price were only $10,000, 10% would be $1,000, but the franchisee would still need to pay the minimum transfer fee of $1,500.
It is important to note that Buildingstars can disapprove a transfer if the transferee does not meet the standards for new franchisees or if the terms of the sale are not economically feasible for the proposed buyer. The transferee must also execute a new Franchise Agreement with Buildingstars. This transfer fee does not apply in the event of death or incapacity of the franchisee when transferring to a designated heir.