Does Buildingstars have an obligation to replace a customer account if it discontinues a Buildingstars franchisee's right to service it?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
has not properly serviced (in a professional, timely and efficient manner) said new customer account; or (iii) BUILDINGSTARS has received any reports of missed cleanings, theft, low quality service or a request of a change in franchisee from the new customer.
- G. Inspections of Customer Premises. BUILDINGSTARS may make periodic quality control and customer relations visits to each customer account location of FRANCHISEE.
- H. Discontinue Right to Customer Account. BUILDINGSTARS retains the right to discontinue allowing FRANCHISEE to service a Customer Account at any time if BUILDINGSTARS, in its sole discretion, determines that FRANCHISEE is not adequately servicing the customer account. Factors which BUILDINGSTARS considers include, but are not limited to the following: Customer complaints, unresponsiveness to Customer or BUILDINGSTARS, allegations by Customer of theft or breakage, lateness or failure to complete the job in a professional manner. In such event, BUILDINGSTARS does not have any obligation to replace said Customer Account with another.
- I. Right to Audit. BUILDINGSTARS may, from time to time, cause one or more complete audits to be made of the affairs and records relating to the operations of the Business. Upon request by BUILDINGSTARS, FRANCHISEE shall make such books, records and information available to BUILDINGSTARS or its designated representative at all reasonable times for review and audit by BUILDINGSTARS at FRANCHISEE'S place of business.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars retains the right to discontinue allowing a franchisee to service a customer account at any time if Buildingstars determines, in its sole discretion, that the franchisee is not adequately servicing the customer. Factors Buildingstars considers include customer complaints, unresponsiveness, allegations of theft or breakage, lateness, or failure to complete the job professionally.
In the event Buildingstars discontinues a franchisee's right to service a customer account, Buildingstars does not have any obligation to replace that customer account with another. This means a Buildingstars franchisee could lose a customer account due to performance issues and not receive a replacement account from Buildingstars.
However, Buildingstars will replace an initial or new customer account if certain events occur within the first six months of the franchisee servicing the customer, provided the franchisee is in compliance with the Franchise Agreement. These events include the customer ceasing business, becoming insolvent or bankrupt, or moving outside the territory. In these specific instances, Buildingstars will offer a new customer account or increase an existing account with monthly contract revenue equal to the lost account's revenue. The franchisee will not receive a refund or reduction in Account Sales Fees already paid and must continue paying any outstanding Account Sales Fee according to the Promissory Note.