What is Buildingstars' role in providing billing and collection services to the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
sory assistance in the operation 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars provides billing and collection services to franchisees as part of its management services. Buildingstars is authorized to bill customers on a scheduled basis, accept payments, collect accounts receivable, and maintain revenue records. Buildingstars provides customer imprinted invoices, envelopes, and postage, along with ongoing phone contact and monthly mailed and faxed reminder notices to delinquent customers. Buildingstars also provides the franchisee with a Monthly Revenue Statement. Buildingstars has subcontracted with its Affiliate, Buildingstars Operations, Inc., to provide all of the services relating to Customer Accounts which include billing and collection as set forth herein to FRANCHISEE on behalf of BUILDINGSTARS. BUILDINGSTARS reserves the right to modify, extend or discontinue said subcontract relationship at any time.
However, Buildingstars is not responsible if the customer fails to pay, nor is it required to commence any further action beyond sending scheduled statements. The franchisee is responsible for all collection activities if a customer is delinquent in payment. The franchisee authorizes Buildingstars to collect cash and other forms of payment, endorse checks, sign liens, and take necessary actions to carry out the agreement's terms.
Furthermore, Buildingstars is authorized to deduct fees, insurance payments, and out-of-pocket costs (including attorney's fees and court costs) from customer payments it collects to cover amounts due to Buildingstars. 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. The franchisee must deliver all money collected from customers to Buildingstars immediately and is responsible for all attorneys' fees, court costs, and expenses incurred to enforce collection from customers. Buildingstars is not obligated to hire attorneys or commence litigation to enforce payment, other than sending scheduled statements and monthly reminders.