What is the penalty for Failure to Carry Insurance for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Failure to Carry Insurance | $100 for the first day and $25 for each additional day | On demand | Payable only if you do not carry the required insurance |
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the penalty for failure to carry the required insurance is $100 for the first day and $25 for each additional day. This fee is payable on demand.
This means that if a Buildingstars franchisee fails to maintain the required insurance coverage, they will incur a daily penalty. The initial penalty is $100 for the first day of non-compliance, followed by an additional $25 for each subsequent day the franchisee remains uninsured. These penalties can accumulate quickly, potentially leading to a significant financial burden if the franchisee does not promptly rectify the insurance lapse.
Franchisees should ensure they understand the insurance requirements outlined in the Franchise Agreement and maintain continuous coverage to avoid these penalties. It is also important to note that the franchisor can demand immediate payment of these penalties. Given the potential for accumulating daily penalties, franchisees should prioritize maintaining the required insurance coverage to avoid financial repercussions.