What services does Buildingstars provide to franchisees regarding billing and collections?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 or FRANCHISEE.
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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars provides several billing and collection services to its franchisees. Buildingstars is authorized to bill customers on a scheduled basis, accept payments from customer accounts, collect accounts receivable, and maintain revenue records. Buildingstars will also provide customer-imprinted invoices, envelopes, and postage. Additionally, Buildingstars offers ongoing phone contact and reminder notices, both mailed and faxed, to delinquent customers on a monthly basis. Buildingstars also provides franchisees with a Monthly Revenue Statement.
Buildingstars is authorized to collect cash and other forms of payment from accounts, endorse the franchisee's name on checks, deposit checks, sign liens, and take necessary actions to carry out the agreement terms. Buildingstars will deduct fees, insurance payments, and out-of-pocket costs incurred while enforcing payments from customers or franchisees from the payments it collects. Buildingstars will then disburse the amount due to the franchisee according to the procedures in the Confidential Operations Manual.
However, the franchisee is responsible for all collection activities if a customer is delinquent in payment and must pay for all reasonable attorneys' fees, court costs, expenses, and out-of-pocket costs incurred to enforce collection from customers. Buildingstars is not obligated to hire attorneys or commence litigation, except for sending scheduled statements. Franchisees must immediately deliver any money collected from customers to Buildingstars. Buildingstars also withholds royalty fees, management fees, non-performance fees, and administration fees from the billings it collects for the franchisee.