What is the minimum transfer fee for a Buildingstars franchise?
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 subject to a transfer fee. The transfer fee is the lesser of $4,000 or 10% of the total sales price of the interest being transferred, including any down payments or amounts financed in lieu of the franchise fee. However, the transfer fee will not be less than $1,500.
In practical terms, this means that if a Buildingstars franchisee sells their franchise, the transfer fee they pay to Buildingstars will depend on the sale price. If 10% of the sale price is less than $4,000 but more than $1,500, that percentage will be the transfer fee. If 10% of the sale price exceeds $4,000, the transfer fee will be capped at $4,000. Regardless of the sale price, Buildingstars guarantees a minimum transfer fee of $1,500.
For a prospective Buildingstars franchisee, it's important to understand these transfer fee implications. If they plan to sell their franchise in the future, they should factor in this cost when determining their potential profit from the sale. Knowing the minimum and maximum transfer fees allows for better financial planning and a clearer understanding of the costs associated with transferring a Buildingstars franchise.