What services does Buildingstars provide related to billing and collections for franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
nt 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. Offering Period for Initial Customer Accounts. BUILDINGSTARS shall offer FRANCHISEE initial customer accounts totaling at least Two Thousand Dollars ($2,000).
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, collect accounts receivable, and maintain revenue records. Buildingstars will also provide customer-imprinted invoices, envelopes, and postage. They also provide ongoing phone contact and reminder notices, both mailed and faxed, to delinquent customers on a monthly basis. Buildingstars will also provide franchisees with a Monthly Revenue Statement.
Buildingstars is authorized to collect cash and other forms of payment from customers, endorse the franchisee's name on checks, deposit checks, sign liens, and take necessary actions to carry out the agreement's terms. Buildingstars will collect payments and disburse the amount due to the franchisee, following procedures in the Confidential Operations Manual. Buildingstars can deduct fees, insurance payments, and out-of-pocket costs (including attorney's fees and court costs) from customer payments to cover amounts due to Buildingstars or incurred in enforcing payment.
However, Buildingstars is not obligated to hire attorneys, commence litigation, or take actions beyond sending scheduled statements to enforce customer payments. The franchisee is responsible for all collection activities if a customer is delinquent. Franchisees must deliver all money collected from customers to Buildingstars immediately. Buildingstars also provides billing and collection services on behalf of the franchisee but is not responsible if the customer fails to pay and is not required to commence any further action other than sending statements.