What is the minimum transfer fee for a Buildingstars franchise transfer?

According to Buildingstars' 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.

This means that even if 10% of the sale price is less than $1,500, the franchisee will still have to pay a minimum transfer fee of $1,500 to Buildingstars. For example, if a Buildingstars franchise is sold for $10,000, 10% of the sale would be $1,000; however, the franchisee would still be responsible for paying the minimum transfer fee of $1,500.

It is important to note that Buildingstars can disapprove of a transfer if the transferee does not meet the standards of a new franchisee, is not of good moral character, does not have a good credit rating, lacks sufficient financial resources, or does not have competent qualifications. The transferee must also execute a new franchise agreement with Buildingstars with the standard terms and conditions then being offered in the franchisee's state, and the owners must execute a personal guarantee.

In the event of death or legal incapacity of the franchisee, no transfer fee will be charged to the franchisee's heirs, personal representatives, or conservators, provided they meet Buildingstars' standards for new franchisees, execute the then-current form of franchise agreement, and ensure that a manager has satisfactorily completed Buildingstars' Initial Training Program.