factual

What is Buildingstars' requirement regarding the delivery of money collected from customers?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c. Application of Payments. FRANCHISEE agrees to immediately deliver to BUILDINGSTARS any and all money collected from its Customers.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars' 2025 Franchise Disclosure Document, franchisees are required to immediately deliver any and all money collected from their customers to Buildingstars. This requirement is part of the broader agreement outlined in the franchise contract, specifically under the section addressing the application of payments.

This immediate delivery requirement means that a Buildingstars franchisee cannot hold onto customer payments for any extended period. This could impact the franchisee's cash flow management, as they must remit the collected funds promptly rather than using them for short-term operational expenses.

While the FDD specifies the franchisee's obligation to deliver payments, it does not detail the exact method or timeframe for this delivery, beyond stating it must be done 'immediately'. A prospective franchisee should seek clarification from Buildingstars regarding the specific procedures for delivering customer payments, including acceptable payment methods (e.g., electronic transfer, check) and the precise definition of 'immediately' in this context.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.