Where are the procedures for disbursing payments to the Buildingstars franchisee set forth?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE further authorizes BUILDINGSTARS to deduct from payments BUILDINGSTARS collects from the Customers the fees described in Sections III and IV of this Agreement and any other amounts due to BUILDINGSTARS, any authorized insurance payments, and any out of pocket costs (including but not limited to attorney's fees and court costs) incurred by BUILDINGSTARS in enforcing payment of accounts by Customers, FRANCHISEE or FRANCHISEE'S guarantors. BUILDINGSTARS will collect all payments actually received and disburse the amount due to FRANCHISEE in accordance with the procedures set forth in the Confidential Operations Manual.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the procedures for disbursing payments to franchisees are detailed in the Confidential Operations Manual. Buildingstars collects payments from customers and then disburses the amount due to the franchisee after deducting fees, insurance payments, and any out-of-pocket costs incurred while enforcing payments from customers, franchisees, or their guarantors.
Buildingstars also provides billing and collection services to the franchisee. As part of these management services, Buildingstars will bill customers, accept payments, collect receivables, and maintain revenue records. Buildingstars provides invoices, envelopes, and postage for customer billing, as well as ongoing phone contact and reminder notices to customers with delinquent accounts.
Each month, Buildingstars will furnish the franchisee with a Monthly Revenue Statement. The franchisee authorizes Buildingstars to collect payments, endorse checks, sign liens, and take necessary actions to fulfill the agreement's terms. For a prospective franchisee, understanding the specifics within the Confidential Operations Manual is crucial to managing their cash flow and financial obligations effectively.