factual

What minimum standards is a Buildingstars franchisee expected to meet?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

term of this agreement, to operate, advertise and promote the Business under the name "Buildingstars" without prefix or suffix and to adopt and use the Marks and System licensed hereunder solely in the

manner prescribed by BUILDINGSTARS. FRANCHISEE must file an assumed or fictitious name filing where required by applicable law and always use the words d/b/a after FRANCHISEE'S legal name.

C. Standards of Operation.

    1. FRANCHISEE agrees to comply with BUILDINGSTARS' written policies, practices, procedures, regulations and standards, whether set forth in the Confidential Operations Manual or in other materials supplied to FRANCHISEE by BUILDINGSTARS which may be changed or modified from time to time.
    1. FRANCHISEE shall use all equipment, products and supplies in the operation of the Business that meet BUILDINGSTARS' standards and specifications as set forth in the Confidential Operations Manual.
    1. FRANCHISEE shall continuously and prominently display the Marks in connection with the Business, and will not take or fail to take any action, the result of which might detract from the public image of BUILDINGSTARS, the Business, the System or the Marks. FRANCHISEE shall not display or permit to be displayed at the Business any business name or service not authorized hereunder.
    1. FRANCHISEE shall at all times maintain minimum levels of inventory and supplies in the amount and type as may be directed by BUILDINGSTARS from time to time or as may be specified in the Confidential Operations Manual.
    1. All of FRANCHISEE'S business dealings will be governed by the highest professional standards of honesty, integrity, fair dealing and ethical conduct. FRANCHISEE will do nothing that would tend to discredit, dishonor, reflect adversely upon, or in any manner injure the reputation of BUILDINGSTARS, its other franchisees and its Affiliates. FRANCHISEE shall pay when due all of its own obligations including but not limited to taxes whatsoever incurred with the purchase and operation of the Business.
    1. FRANCHISEE shall at all times faithfully, honestly and diligently perform the obligations hereunder, use its best efforts to promote and enhance the Business, and shall not engage in any business or other activity that will conflict with the FRANCHISEE'S obligations hereunder. FRANCHISEE or its Principal Owners agree to participate personally in the direct operation of the Business on a full time basis.
    1. FRANCHISEE agrees to and shall take all steps as are necessary to ensure that its employees treat all Customers fairly and provide services hereunder in an honest, ethical, and nondiscriminatory manner. Further, FRANCHISEE shall not withhold any material information from its Customers or attempt to sell any service to them that FRANCHISEE believes, in its good faith estimation, is not needed.
    1. FRANCHISEE shall not advertise in a deceptive, misleading, or unethical manner; shall only make those promises, representations, and guarantees to Customers, and others at the Business authorized by BUILDINGSTARS; preserve good Customer relations; render competent, prompt, courteous, and knowledgeable service; and meet such minimum standards as BUILDINGSTARS may establish from time to time in the Confidential Operations Manual.
    1. FRANCHISEE recognizes that it is not permitted to use the System or Marks in connection with the sale of any products or services other than the cleaning business. If a Customer requests that FRANCHISEE render any services or sell any products that are not of the type that is

normally rendered in connection with the System, FRANCHISEE must first notify BUILDINGSTARS and obtain approval from BUILDINGSTARS. BUILDINGSTARS will not unreasonably object to FRANCHISEE'S request provided that the services do not interfere with the services that FRANCHISEE renders in connection with the franchise, the services and products are in no way associated with the Marks and System, FRANCHISEE is capable of providing the products and services in a good and workmanlike manner, and the Customer is fully apprised that the services or products are not being rendered in connection with the franchise. BUILDINGSTARS retains the right to object to any future requests and the failure to object to any request shall not prohibit BUILDINGSTARS from objecting to any future requests.

    1. In the event that FRANCHISEE wishes to advertise its Business, FRANCHISEE must submit all of its own advertising and sale promotion materials (including Internet advertising) to BUILDINGSTARS for prior consent. If BUILDINGSTARS does not consent to the advertising within 20 days after receipt of the advertising, said advertising is deemed acceptable.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars' 2025 Franchise Disclosure Document, franchisees must adhere to several operational and ethical standards. Buildingstars franchisees must comply with all written policies, practices, procedures, regulations, and standards set by Buildingstars, which may be found in the Confidential Operations Manual or other materials provided by Buildingstars and are subject to change. They are required to use equipment, products, and supplies that meet Buildingstars' standards and specifications as detailed in the Confidential Operations Manual. Franchisees must also prominently display Buildingstars' trademarks and avoid any actions that could harm the brand's public image.

Buildingstars franchisees are expected to maintain minimum inventory levels as directed by Buildingstars or specified in the Confidential Operations Manual. All business dealings must be conducted with honesty, integrity, and ethical conduct, avoiding any actions that could discredit Buildingstars or its affiliates. Franchisees must diligently perform their obligations, promote the business, and avoid conflicts of interest, with the franchisee or a principal owner participating in the business full-time.

Furthermore, Buildingstars requires franchisees to ensure their employees treat customers fairly, honestly, ethically, and without discrimination. Franchisees must not withhold material information or sell unnecessary services to customers. Advertising must not be deceptive or unethical, and franchisees should only make promises authorized by Buildingstars, maintain good customer relations, and provide competent service, meeting minimum standards established in the Confidential Operations Manual. Franchisees are restricted from using the Buildingstars system or marks for any business other than the cleaning business without prior approval from Buildingstars.

In addition to these operational standards, Buildingstars franchisees are obligated to obtain all necessary licenses and permits and to maintain the minimum insurance coverages required by Buildingstars, providing evidence of such insurance. They must also maintain their books and records in accordance with generally accepted accounting principles and provide Buildingstars with necessary information for financial performance representations. Franchisees are required to disclose any ideas or innovations related to the business to Buildingstars, which will be considered Buildingstars' property.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.