What is the principal sum of the promissory note payable to Buildingstars Management, Inc.?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| ess of FRANCHISEE: | |
|---|---|
| Date: | Date: |
| required to comply with and abide by such covenants and provisions. | For good and valuable consideration, the receipt of which is hereby acknowledged by each undersigned individual, each undersigned individual agrees to be personally bound by and personally liable for the breach of each of the provisions in Section IX (Trade Secrets and Confidential Information) and Section X (Restrictive Covenant) to the same extent as and for the same period of time as FRANCHISEE is |
| Print Name: | |
| Print Name: |
EXHIBIT I PROMISSORY NOTE
PROMISSORY NOTE
| For value received, the undersigned promise to pay to the order of BUILDINGSTARS |
|---|
| MANAGEMENT, INC.,, |
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the principal sum of the promissory note payable to Buildingstars Management, Inc. is $600. This note is payable without interest, except in the event of default. The note is related to financing a portion of the initial franchise fee.
The $600 principal is to be paid in six equal monthly installments of $100 each. The first payment is due on the 15th day of the month, 90 days after the execution of the Franchise Agreement, and continues on the 15th day of each month for six months. Buildingstars may withhold the monthly note payment from the amount of billings it collects for the franchisee, according to Section VI.D of the Franchise Agreement.
This promissory note represents a portion of the initial franchise fee, which totals $1,295. The initial franchise fee is payable upon the execution of the agreement, with a down payment of $695 and the remaining $600 covered by the promissory note. A default on the note is considered a default under the Franchise Agreement. This arrangement allows franchisees to finance a portion of their initial investment, potentially making the franchise more accessible.