What is the required general liability insurance limit per occurrence that a Buildingstars franchisee must maintain?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
S collects for the FRANCHISEE.
- D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Revenue from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Administration Fee is refundable.
- E. Insurance Program Fee. FRANCHISEE is required to participate in the insurance program developed for BUILDINGSTARS and its franchisees. Although BUILDINGSTARS is obligated to pay the insurance premiums for FRANCHISEE'S coverage, FRANCHISEE is obligated to pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month followin
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are required to participate in the insurance program developed for Buildingstars and its franchisees. As part of this program, Buildingstars franchisees must maintain general liability insurance with limits of $1,000,000 per occurrence.
In addition to the per occurrence limit, the insurance coverage also includes $2,000,000 for products/completed operations aggregate and $2,000,000 aggregate. This insurance coverage, along with worker's compensation and non-owned auto insurance, is provided through the Insurance Program Fee, which is currently 3 ½% of Gross Revenue from the Business.
It is important to note that the insurance provided through the Insurance Program Fee is considered the minimum requirement. Buildingstars advises franchisees to consult with their own insurance agent to determine if these coverage amounts are adequate to protect their interests. Buildingstars explicitly states that it makes no representation that these policies and amounts are sufficient for the franchisee's needs, and the cost of the Insurance Program Fee is subject to change. Franchisees should be aware that failure to comply with the insurance program requirements may result in personal liability for any claims made by persons performing services on behalf of the franchisee.