Does the Buildingstars Non-Performance Fee include out-of-pocket expenses?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ustomer 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 not charge FRANCHISEE a Non-Performance Fee. However, if after the twenty-four (24)
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Non-Performance Fee does include out-of-pocket expenses. Buildingstars charges this fee if its standards are not met, leading to customer complaints that Buildingstars must resolve.
If Buildingstars receives a complaint, the franchisee has 24 hours to fix the issue. If the franchisee resolves the complaint within this timeframe, Buildingstars will not charge a Non-Performance Fee.
However, if the complaint remains unresolved after 24 hours, Buildingstars has the right to step in and fix the issue themselves. In this case, Buildingstars will charge the franchisee a Non-Performance Fee of $25 per hour per person needed to resolve the complaint, in addition to any actual out-of-pocket expenses incurred. This fee will be withheld from the payments Buildingstars collects for the franchisee.