What are the payment options for the Buildingstars Initial Franchise Fee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5. INITIAL FEES
The amount of the Initial Franchise Fee depends upon the type of franchise program you are purchasing – Technician Program, On-Site Manager Program or Corporate Program. At the time you sign the Franchise Agreement, you must pay BUILDINGSTARS an Initial Franchise Fee in cash or, if you want us to finance it, we may do so under the terms and conditions explained below. The chart shows the Initial Franchise Fee for each program.
[Item 5: INITIAL FEES]
You will receive a credit against the Initial Franchise Fee for the Corporate and On-Site Manager Program equal to the amount you paid for the Initial Franchise Fee and Account Sales Fees from the prior Program.
Note 1: Technician Program.
The Initial Franchise Fee is $1,295 which is payable when you sign the Franchise Agreement. If you prefer, we will finance a portion of the Initial Franchise Fee. You will pay us a down payment of $695 when you sign the Franchise Agreement and sign a Promissory Note for $600 in the form set forth in Exhibit I of the Franchise Agreement. The Note is payable without interest in 6 monthly installments of $100 each, with the first installment due on the 15th day of the month which is 90 days after execution of the Franchise Agreement. BUILDINGSTARS may withhold the monthly Note payments from the amount of billings BUILDINGSTARS collects for you, as more fully described in Sec. VI.D. of the Franchise Agreement.
Note 2: On-Site Manager Program.
The Initial Franchise Fee consists of two separate fees: a fixed fee ("Base Fee") and a variable fee ("MCR Fee"). The Base Fee is $3,995. The MCR Fee is 150% of the Monthly Contract Revenue if you pay cash and 200% of the Monthly Contract Revenue if the Initial Franchise Fee is financed. The MCR Fee is $3,000 ($2,000 Monthly Contract Revenue x 150%).
[Item 5: INITIAL FEES]
Initial Franchise Fee - Financed
If financed, you must make a minimum down payment of $3,995 upon the execution of the Franchise Agreement and execute a Promissory Note for the amount financed. The Promissory Note will provide for equal payments for a period of 20 months. The Promissory Note and Guarantee will contain substantially the same terms and conditions as are set forth in Exhibit II of the On-site Manager Agreement.
Exhibit I of the On-Site Manager Franchise Agreement will set forth the manner of payment of the Initial Franchise Fee.
[Item 5: INITIAL FEES]
Initial Franchise Fee - Financed
If financed, you must make a minimum down payment of $6,995 upon the execution of the Corporate Franchise Agreement and execute a Promissory Note for the amount financed. The Promissory Note will provide for equal payments for a period of 20 months. The Promissory Note and Guarantee will contain substantially the same terms and conditions as are set forth in Exhibit III of the Corporate Franchise Agreement. Exhibit II of the Corporate Franchise Agreement will set forth the manner of payment of the Initial Franchise Fee.
[Item 5: INITIAL FEES]
Note 3: Corporate Program.
The Initial Franchise Fee consists of two separate fees: a fixed fee ("Base Fee") and a variable fee ("MCR Fee"). The Base Fee is $6,995. The MCR Fee is 300% of the Monthly Contract Revenue if you pay cash and 400% of the Monthly Contract Revenue if the Initial Franchise Fee is financed. The MCR Fee is $30,000 ($10,000 Monthly Contract Revenue x 300%).
If you are not already an On-Site Manager Program franchisee, you must pay the Initial Franchise Fee in full when this Agreement is signed. If you are in good standing under your On-Site Manager Program Franchise Agreement, the initial franchise fee paid under the On-Site Manager Program Franchise Agreement will be credited against the Initial Franchise Fee and amounts paid for Account Sales Fees. You will either pay the balance of the Initial Franchise Fee upon execution of the Corporate Franchise Agreement or pay a portion of the Initial Franchise Fee and sign a promissory note for the balance upon execution of the Corporate Franchise Agreement.
[Item 5: INITIAL FEES]
| Monthly Contract | Initial Franchise Fee | Minimum Down | Number of | Monthly Payment | |
|---|---|---|---|---|---|
| Revenue | (Including Finance Fees) | Payment | Amount Financed | Months | Amount |
| $2,000 | $7,995 | ($3,995) | $4,000 | 20 | $200 |
[Item 5: INITIAL FEES]
| Monthly Contract Revenue | Rate | MCR Fee | Base Fee | Initial Franchise Fee (lump sum) |
|---|---|---|---|---|
| $2,000 | 150% | $3,000 | $3,995 | $6,995 |
[Item 5: INITIAL FEES]
| Monthly Contract Revenue | Rate | MCR Fee | Base Fee | Initial Franchise Fee (lump sum) |
|---|---|---|---|---|
| $10,000 | 300% | $30,000 | $6,995 | $36,995 |
[Item 5: INITIAL FEES]
If you are not already a Technician Program franchisee, you must pay the Initial Franchise Fee in full when the Franchise Agreement is signed. If you are in good standing under your Technician Program Franchise Agreement, the initial franchise fee paid under the Technician Program Franchise Agreement will be credited against the Initial Franchise Fee ("Technician Credit"). You can either pay the balance of the Initial Franchise Fee upon execution of the On-Site Manager Franchise Agreement or pay a portion of the Initial Franchise Fee and sign a promissory note for the balance upon execution of the On-Site Manager Franchise Agreement.
[Item 5: INITIAL FEES]
| Monthly Contract | Initial Franchise Fee | Minimum Down | Amount | Number of | Monthly Payment |
|---|---|---|---|---|---|
| Revenue | (Including Finance Fees) | Payment | Financed | Months | Amount |
| $10,000 | $46,995 | ($6,995) | $40,000 | 20 |
[Item 5: INITIAL FEES]
| Minimum | Monthly | Note | Length of | ||
|---|---|---|---|---|---|
| Type of Franchise | Total Initial Franchise Fee | Down Payment | Payments | Amount | Note |
| TECHNICIAN | $995 (cash) | $695 | $100 | $600 | 6 months |
| (Note 1) | $1,295 (financed) $6,995 (cash) | ||||
| ON-SITE MANAGER | $7,995 (financed) | $3,995 | $200 | $4,000 | 20 months |
| (Note 2) | ($2,000 in Monthly Contract Revenue ) $36,995 (cash) | ||||
| CORPORATE | $46,995 (financed) | $6,995 | $2,000 | $40,000 | 20 months |
| (Note 3) | ($10,000 in Monthly Contract Revenue) |
[Item 5: INITIAL FEES]
Even as a franchisee in the On-Site Manager Program, there is no assurance that a Corporate Program franchise will be offered to you.
The Initial Franchise Fee for all of the Programs are fully earned when paid and are not refundable under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the payment options for the Initial Franchise Fee depend on the type of franchise program purchased: Technician, On-Site Manager, or Corporate Program. Buildingstars requires the Initial Franchise Fee to be paid in cash at the time the Franchise Agreement is signed, but they may finance it under certain terms and conditions. The Initial Franchise Fees are fully earned when paid and are not refundable under any circumstances.
For the Technician Program, the Initial Franchise Fee is $1,295, payable when signing the Franchise Agreement. Buildingstars offers financing with a $695 down payment and a Promissory Note for $600, payable in six monthly installments of $100 each, starting 90 days after the agreement's execution. Buildingstars may withhold these payments from the franchisee's billings. For the On-Site Manager Program, the Initial Franchise Fee consists of a Base Fee of $3,995 and a variable MCR Fee, which is 150% of the Monthly Contract Revenue if paid in cash or 200% if financed. As an example, with $2,000 Monthly Contract Revenue, the MCR Fee would be $3,000.
For the Corporate Program, the Initial Franchise Fee also includes a Base Fee and an MCR Fee. The Base Fee is $6,995, and the MCR Fee is 300% of the Monthly Contract Revenue if paid in cash or 400% if financed. For instance, with $10,000 Monthly Contract Revenue, the MCR Fee would be $30,000. If financing the On-Site Manager or Corporate Program, a minimum down payment is required upon the Franchise Agreement's execution, with the remaining amount financed through a Promissory Note payable over 20 months. For example, if financing the On-Site Manager Program with $2,000 Monthly Contract Revenue, the Initial Franchise Fee is $7,995, with a $3,995 down payment and $4,000 financed over 20 months at $200 per month. For the Corporate Program with $10,000 in Monthly Contract Revenue, the Initial Franchise Fee is $46,995, with a $6,995 down payment and $40,000 financed over 20 months.
If a franchisee is already in good standing under a Technician or On-Site Manager Program Franchise Agreement, the initial franchise fee paid under the prior agreement may be credited against the Initial Franchise Fee for the new program. The franchisee can then pay the balance in cash or finance a portion of it with a promissory note. The specific terms and conditions for financing are detailed in the exhibits of the respective franchise agreements.