Is Buildingstars representing that the minimum insurance requirements are sufficient for a franchisee's needs?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars does not represent that its minimum insurance requirements are sufficient to protect a franchisee's interests. Buildingstars requires franchisees to maintain certain minimum insurance coverages, but explicitly advises franchisees to consult with their own insurance agent to determine adequate coverage. Buildingstars retains the right to increase the required types and amounts of insurance coverage at its discretion.

Buildingstars may offer an insurance program to franchisees, for which the franchisee would pay an Insurance Program Fee. This fee is currently 3.5% of Gross Sales, but is subject to change. Buildingstars can modify or discontinue this program at any time and can terminate a franchisee's participation for any reason, including failure to comply with the Franchise Agreement.

If a Buildingstars franchisee fails to maintain adequate insurance, Buildingstars has the option to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing Buildingstars for the costs. Additionally, Buildingstars may charge the franchisee $100 for the first day and $25 for each subsequent day the franchisee lacks the minimum required insurance. Ultimately, it remains the franchisee's responsibility to maintain adequate insurance coverage throughout the term of the agreement and even after its expiration, and failure to do so does not relieve them of any contractual obligations or liabilities.