What is the minimum insurance requirement for a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
S collects for the FRANCHISEE.
- D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Revenue from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Administration Fee is refundable.
- E. Insurance Program Fee. FRANCHISEE is required to participate in the insurance program developed for BUILDINGSTARS and its franchisees. Although BUILDINGSTARS is obligated to pay the insurance premiums for FRANCHISEE'S coverage, FRANCHISEE is obligated to pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month followin
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees are required to participate in the insurance program that Buildingstars has developed. Currently, the insurance program fee is 3.5% of gross revenue from the business. This program provides the franchisee with worker's compensation, general liability insurance, and non-owned auto insurance. The general liability insurance includes limits of $1,000,000 per occurrence, $2,000,000 products/completed operations aggregate, and $2,000,000 aggregate.
Buildingstars retains the right to modify or discontinue the insurance program at any time. The cost of the Insurance Program Fee is subject to change as well. Buildingstars may also terminate a franchisee's right to participate in the insurance program if the franchisee fails to comply with the terms of the franchise agreement. The insurance provided through the Insurance Program Fee is the minimum insurance requirement, and Buildingstars recommends that franchisees consult with their own insurance agents to determine if the coverage is adequate for their needs.
It is important to note that if anyone other than the person who signed the agreement performs services on behalf of the franchisee, the franchisee's insurance coverage will be jeopardized, and this could be grounds for termination of the agreement. The franchisee is responsible for complying with the terms of the insurance program, and Buildingstars assumes no responsibility for the franchisee's violation of these terms. The franchisee must indemnify and hold Buildingstars harmless from any claims that arise due to the franchisee's failure to comply with the insurance program requirements.