When does the minimum monthly revenue requirement commence for a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
d fully paid license to use and sublicense the use of the ideas, concepts, techniques or materials.
- H. Financial Records and Reports. FRANCHISEE agrees to furnish to BUILDINGSTARS financial reports as shall be requested by BUILDINGSTARS from time to time pursuant to or in connection with this Agreement or as specified in the Confidential Operations Manual. FRANCHISEE shall establish a business checking account and will continue to maintain a business checking account throughout the term of this Agreement.
- I. Minimum Revenue Requirement. Commencing as
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must meet a minimum monthly revenue requirement starting in the 13th month of operating their business. This requirement is set at $20,000 in Monthly Contract Revenue each month for the remainder of the franchise agreement term.
If a Buildingstars franchisee fails to meet the $20,000 minimum revenue requirement in any month after the initial 12 months, Buildingstars has the right to take corrective actions. These actions can include modifying the franchisee's designated area or even terminating the franchise agreement altogether. Importantly, Buildingstars is not obligated to provide the franchisee with an opportunity to correct the revenue shortfall before taking these actions.
This minimum revenue requirement is a significant factor for prospective Buildingstars franchisees to consider. It highlights the importance of achieving a certain level of sales and maintaining it consistently. Franchisees should carefully evaluate their ability to meet this requirement, considering factors such as market conditions, competition, and their own sales and marketing capabilities. The potential consequences of failing to meet the minimum revenue requirement, including area modification or termination, underscore the need for a solid business plan and effective execution.