Is Buildingstars obligated to offer new customer accounts or increase existing customer accounts to a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
iness as described in Section VII.A below, BUILDINGSTARS shall offer FRANCHISEE customer accounts which would generate at least $1,000 in Monthly Contract Revenues. FRANCHISEE will then follow the procedure set forth in the Confidential Operations Manual for accepting or rejecting said customer accounts. Once BUILDINGSTARS has offered FRANCHISEE customer accounts which total $1,000 in Monthly Contract Revenues, regardless of whether the FRANCHISEE accepts these accounts, BUILDINGSTARS' obligations under this Section VI.E shall be deemed satisfied.
- F. New Customer Accounts. BUILDINGSTARS may offer new customer accounts or increase the existing customer accounts to FRANCHISEE if: (i) FRANCHISEE is in full compliance with the terms of this Agreement; (ii) FRANCHISEE has provided satisfactory services to its existing customers; and (iii) FRANCHISEE'S Monthly Contract Revenue does not exceed $5,000 per month. FRANCHISEE acknowledges that BUILDINGSTARS has no obligation to offer new customer accounts or increase an
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars is generally not obligated to offer new customer accounts or increase existing customer accounts to a franchisee. However, within the first 90 days of a franchisee's operation, Buildingstars must offer customer accounts that would generate at least $1,000 in Monthly Contract Revenues. Once Buildingstars offers accounts totaling $1,000 in monthly revenue, their initial obligation is satisfied, regardless of whether the franchisee accepts the accounts.
After the initial 90-day period, Buildingstars may offer new customer accounts or increase existing accounts if the franchisee meets certain conditions: the franchisee is in full compliance with the franchise agreement, provides satisfactory service to existing customers, and has Monthly Contract Revenue that does not exceed $5,000 per month. However, Buildingstars explicitly states that it has no obligation to do so.
Furthermore, Buildingstars is under no obligation to provide new customer accounts upon renewal of the franchise agreement. The franchisee also has the right to return any customer account to Buildingstars, provided they give at least ten days' prior written notice, but the franchisee will not receive any compensation for returning the account. This policy gives Buildingstars significant flexibility in managing customer accounts and franchisee territories, while placing the onus on the franchisee to maintain good standing and grow their business to qualify for additional opportunities, up to the $5,000 monthly revenue threshold.