Is Buildingstars obligated to offer new customer accounts to franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ILDINGSTARS' obligations to provide customer accounts as provided for under Sections III and VI.E. shall be deemed satisfied.
Notwithstanding anything herein to the contrary, if FRANCHISEE is converting its franchise from a Technician Program franchise, any customer account which FRANCHISEE continues to service from the Technician Program will be applied to fulfill the Monthly Contract Revenue which FRANCHISEE has chosen.
F. New Customer Accounts. BUILDINGSTARS may offer new customer accounts or increase the existing customer accounts to FRANCHISEE if FRANCHISEE is in full compliance with the terms of this Agreement. FRANCHISEE acknowledges that BUILDINGSTARS has no obligation to offer new customer accounts or increase an existing customer account. If BUILDINGSTARS offers FRANCHISEE a new customer account, FRANCHISEE must follow the procedures set forth in the Confidential Operations Manual for rejecting or accepting the customer account and pay an Account Sales Fee as set forth herein. FRANCHISEE is under no obligation to accept any customer account.
FRANCHISEE may request new customer accounts and pay the Account Sales Fee which is described in Section IV.C above. BUILDINGSTARS will use its best efforts to provide the new customer accounts within ninety (90) days of the submission of the request and payment by FRANCHISEE as provided above and BUILDINGSTARS will have additional thirty (30) day periods after the initial ninety (90) days to provide the new customer accounts for each additional $1,000 of new customer accounts ("New Customer Accounts Offering Period" or "NCA Offering Period").
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is generally not obligated to offer new customer accounts to franchisees. However, there are some exceptions.
Specifically, Buildingstars may offer new customer accounts or increase existing customer accounts to a franchisee if the franchisee is in full compliance with the terms of the Franchise Agreement. However, the FDD explicitly states that Buildingstars has no obligation to do so. The franchisee can also request new customer accounts and pay an Account Sales Fee. Buildingstars will then use its best efforts to provide these new accounts within 90 days of the request and payment. For each additional $1,000 of new customer accounts requested, Buildingstars has an additional 30 days to fulfill the request.
Buildingstars is obligated to offer a replacement account under specific circumstances. If a customer ceases to do business, becomes insolvent or bankrupt, or moves outside of the franchisee's territory within the first six months of service, Buildingstars will offer the franchisee a new customer account or increase an existing one. The new account will have a Monthly Contract Revenue at least equal to the lost account's Monthly Contract Revenue. The franchisee is not entitled to a refund or reduction in Account Sales Fees already paid and must continue to pay any outstanding balance on the Promissory Note.