On what page of the Buildingstars Franchise Agreement can I find information regarding Buildingstars' obligations?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
FRANCHISEE must notify BUILDINGSTARS in writing of any failure of BUILDINGSTARS to perform any of BUILDINGSTARS' obligations pursuant to this Agreement.
FRANCHISEE may terminate this Agreement if BUILDINGSTARS shall materially default in performance of any terms and conditions in this Agreement, after giving BUILDINGSTARS written notice within thirty (30) days thereof, and if the default has not been corrected within sixty (60) days thereafter.
- 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.
If it is found that FRANCHISEE underreported Gross Sales, FRANCHISEE will reimburse BUILDINGSTARS for the amount of the Account Sales Fees, Administration Fees, Royalty Fees, and Insurance Program Fees, if applicable, that would have been billed had billings been reported accurately, plus interest on those amounts at the rate of the lesser of one and one-half percent (1-1/2%) per month or the maximum legal rate in the jurisdiction where the Business is located.
In addition, in the event that an audit by BUILDINGSTARS results in a determination that any or all of the Account Sales Fee, Administration Fees, Royalty Fees and Insurance Program Fees, if applicable, paid to BUILDINGSTARS are deficient (underpaid) by more than two percent (2%), the FRANCHISEE shall promptly pay to BUILDINGSTARS any amounts shown to be due and all costs and expenses incurred by BUILDINGSTARS in conducting the subsequent audit to determine that the FRANCHISEE is reporting correctly (not the audit which disclosed the original deficiency), including salaries of BUILDINGSTARS' representatives, travel costs, room and board and audit fees.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
Based on the 2025 Buildingstars Franchise Disclosure Document, Item 22, titled "CONTRACTS," outlines various obligations and responsibilities of both the franchisee and franchisor, Buildingstars. Specifically, it addresses scenarios where Buildingstars may fail to meet its obligations under the agreement.
According to the franchise agreement, if Buildingstars fails to perform its obligations, the franchisee must provide written notice of the failure. The franchisee has the right to terminate the agreement if Buildingstars materially defaults on any terms and conditions, provided they give Buildingstars written notice within 30 days of the default and Buildingstars fails to correct the default within 60 days thereafter. This clause protects the franchisee by providing a recourse if Buildingstars does not fulfill its contractual duties.
Additionally, the franchise agreement details Buildingstars' right to audit the franchisee's business records. Buildingstars may conduct audits to ensure accurate reporting of gross sales. If an audit reveals that the franchisee underreported gross sales, the franchisee is responsible for reimbursing Buildingstars for the underpaid Account Sales Fees, Administration Fees, Royalty Fees, and Insurance Program Fees, along with interest. If the underpayment exceeds two percent, the franchisee must also cover the costs of the audit. This audit provision ensures Buildingstars can verify the franchisee's financial reporting and collect accurate fees.