What is the minimum increment of Monthly Contract Revenue a Buildingstars franchisee can request for new customer accounts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
of two hundred percent (200%) of the Monthly Contract Revenue which is generated from the new customer account. The Account Sales Fee is payable in full even if FRANCHISEE loses the new customer account for any reason, however, BUILDINGSTARS will replace the lost new customer account only under the terms and conditions set forth in Section VI.J.
The Account Sales Fee is payable in cash or in the following manner:
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- FRANCHISEE may request new customer accounts in increments of $1,000 of Monthly Contract Revenue. At
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee can request new customer accounts in increments of $1,000 of Monthly Contract Revenue. When a Buildingstars franchisee requests a new customer account, they must pay Buildingstars an Account Sales Fee of 200% of the Monthly Contract Revenue generated from the new customer account.
To finance this fee, the franchisee will sign a Promissory Note for 200% of the Monthly Contract Revenue, payable in 20 equal monthly installments without interest. For example, if a franchisee requests new customer accounts that would generate $2,000 in Monthly Contract Revenue, they would pay $200 as the first monthly payment.
Buildingstars may withhold these monthly Promissory Note payments from the billings it collects for the franchisee. A default on the Promissory Note is considered a default under the Franchise Agreement. This arrangement allows franchisees to grow their business by acquiring new accounts, while Buildingstars collects fees and manages the billing process.