Is Buildingstars responsible if a customer fails to pay for services rendered by a franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars is not responsible if a customer fails to pay for services rendered by the franchisee. While Buildingstars provides billing and collection services on behalf of the franchisee, the document explicitly states that Buildingstars is not responsible if the customer does not pay.
Buildingstars' only obligation is to send scheduled statements, make ongoing phone contact, and send reminder notices to delinquent customers monthly, as Buildingstars deems appropriate. The franchisee is responsible for any and all collection activities if a customer is delinquent in payment.
Furthermore, the franchisee must pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from customers. This means that if a Buildingstars franchisee needs to take legal action to recover unpaid fees, they will be responsible for covering those costs.