What obligations does the Company-owned Master Franchise have to Buildingstars franchisees regarding annual revenue base, training, and support?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company-owned Master Franchise is obligated to offer the franchisee a minimum annual revenue base and on-going training and support. The Company-owned Master Franchise obtains customers under janitorial contracts and assigns them to the franchisees. The Company-owned Master Franchise also provides the franchisees with monthly billing and collection services on the assigned janitorial customers.
The Company-owned Master Franchise remits payments to the franchisee based upon the prior month's billings after deducting the franchise service fees of 10% to 30%, any financing payments due, and other incidental expenses. The net remittances are included in cost of sales in the consolidated financial statements.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Company-owned Master Franchise has specific obligations to its franchisees. It is required to offer franchisees a minimum annual revenue base, ensuring a certain level of income opportunity. Additionally, the Company-owned Master Franchise must provide ongoing training and support to help franchisees operate their businesses effectively.
Buildingstars obtains customers under janitorial contracts and assigns these contracts to the franchisees, providing them with a client base to start their operations. The Company-owned Master Franchise also handles monthly billing and collection services for the janitorial customers assigned to the franchisees, which alleviates administrative burdens for the franchisees.
After collecting payments from customers, the Company-owned Master Franchise remits payments to the franchisees based on the prior month's billings. From these billings, the Master Franchise deducts franchise service fees, which range from 10% to 30%, any financing payments due, and other incidental expenses. The net remittances are then included as cost of sales in the company's consolidated financial statements.