How much is the Buildingstars Non-Performance Fee charged per hour per person?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
throughout the term of this Agreement. For example, the Royalty Fee for February is payable by March 15th. BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Royalty Fee is refundable. Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of thirty percent (30%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
- B. Non-Performance Fee. In order to encourage full attention to Customer needs, a Non-Performance Fee will be charged if BUILDINGSTARS' standards have not been followed resulting in a Customer's complaint in which BUILDINGSTARS intervenes to resolve. If BUILDINGSTARS receives a bona fide complaint from a Customer, BUILDINGSTARS will first offer FRANCHISEE an opportunity to remedy the Customer's complaint. If FRANCHISEE remedies the complaint within a twenty-four (24) hour period after BUILDINGSTARS is notified of the Customer's complaint, BUILDINGSTARS will
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a Non-Performance Fee of $25 per hour per person is charged if Buildingstars intervenes to resolve a customer complaint because the franchisee did not adhere to Buildingstars' standards. Buildingstars will first offer the franchisee an opportunity to remedy the complaint within 24 hours. If the franchisee resolves the complaint within this period, Buildingstars will not charge the Non-Performance Fee.
However, if the complaint is not adequately resolved after the 24-hour period, Buildingstars has the right, but not the obligation, to remedy the complaint themselves and charge the franchisee the Non-Performance Fee. In addition to the hourly fee, Buildingstars may also charge the franchisee for any actual out-of-pocket expenses incurred while resolving the complaint.
Buildingstars withholds the Non-Performance Fee from the amount of billings Buildingstars collects for the franchisee. This means the franchisee will see a direct reduction in their revenue if Buildingstars has to step in to fix a customer issue. This policy encourages franchisees to maintain high standards and promptly address customer concerns to avoid incurring additional costs.