Does Buildingstars provide billing and collection services to franchisees?

eration of the franchise, rendered in such manner and available from time to time, as BUILDINGSTARS may deem appropriate. BUILDINGSTARS reserves the right to charge a reasonable fee for such assistance as well as to be compensated for any travel expenses including but not limited to transportation, lodging, meals and other expenses BUILDINGSTARS' employees incur providing such Advisory Assistance.

• D. Management Services BUILDINGSTARS will provide FRANCHISEE with billing and collection services on its behalf. However, BUILDINGSTARS is not responsible if the Customer fails to pay nor is BUILDINGSTARS required to commence any further action other than as set forth herein if they do not pay. FRANCHISEE is responsible for any and all collection activities if a Customer is delinquent in payment.
• a. Authorization to BUILDINGSTARS. FRANCHISEE hereby authorizes BUILDINGSTARS to bill each Customer on a scheduled basis, accept payments from Customer accounts, collect accounts receivable, and maintain revenue records. BUILDINGSTARS will provide Customer imprinted invoices, envelopes and postage. In addition, BUILDINGSTARS will provide ongoing phone contact and reminder notices, both mailed and faxed to delinquent Customers on a monthly basis. Once a month BUILDINGSTARS will provide FRANCHISEE a Monthly Revenue Statement. FRANCHISEE hereby authorizes BUILDINGSTARS to collect cash and other forms of payment from accounts to which FRANCHISEE has rendered services or products, endorse FRANCHISEE'S name on and deposit checks, sign its name on liens, and take any other action necessary to carry out the terms of this Agreement.

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.

b. Collections. FRANCHISEE must pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from Customers. If a Customer is delinquent in payment, FRANCHISEE is responsible for any and all collection activities. BUILDINGSTARS is not obligated to hire attorneys, commence litigation, or do any acts (other than to send scheduled statements) in order to enforce payment of accounts by Customers. The only collection activities BUILDINGSTARS is required to provide are ongoing phone contact and reminder notices both

mailed and faxed to delinquent Customers on a monthly basis for such time as BUILDINGSTARS deems appropriate.

• c. Application of Payments. FRANCHISEE agrees to immediately deliver to BUILDINGSTARS any and all money collected from its Customers.
• d. Taxes. FRANCHISEE is and will continue to be responsible for complying with all local, state and federal tax requirements including but not limited to income tax, sales tax, use tax or any other tax required along with the proper reporting requirements.
• E. Offering Period for Initial Customer Accounts. BUILDINGSTARS shall offer FRANCHISEE initial customer accounts totaling at least Two Thousand Dollars ($2,000). The period of time in which BUILDINGSTARS will offer FRANCHISEE the initial customer accounts is called the "Initial Customer Accounts Offering Period" or "ICA Offering Period" and it begins with the start of operations as described in Section VII.A. The ICA Offering Period will be ninety (90) days for the first $1,000 in Monthly Contract Revenue and an additional 30 day period for each additional $1,000 in Monthly Contract Revenue.

FRANCHISEE will then follow the procedure set forth in the Confidential Operations Manual for accepting or rejecting said customer accounts. Once BUILDINGSTARS has offered FRANCHISEE customer accounts in the total amount requested by FRANCHISEE which corresponds to the Initial Franchise Fee paid by FRANCHISEE, regardless of whether the FRANCHISEE accepts these accounts, BUILDINGSTARS' obligations to provide customer accounts as provided for under Sections III and VI.E. shall be deemed satisfied.

Source: Item 23 — RECEIPT (FDD pages 43–217)