Is there a minimum revenue requirement that a Buildingstars franchisee must meet to avoid termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
d fully paid license to use and sublicense the use of the ideas, concepts, techniques or materials.
- H. Financial Records and Reports. FRANCHISEE agrees to furnish to BUILDINGSTARS financial reports as shall be requested by BUILDINGSTARS from time to time pursuant to or in connection with this Agreement or as specified in the Confidential Operations Manual. FRANCHISEE shall establish a business checking account and will continue to maintain a business checking account throughout the term of this Agreement.
- I. Minimum Revenue Requirement. Commencing as
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees must meet a minimum monthly revenue requirement. Starting in the 13th month of operation, a Buildingstars franchisee must generate at least $20,000 in Monthly Contract Revenue each month for the remainder of the agreement term.
If a Buildingstars franchisee fails to meet this minimum revenue requirement in any month, Buildingstars has the right to modify the franchisee's area or terminate the agreement. Importantly, Buildingstars can take these actions without providing the franchisee an opportunity to correct the deficiency.
This minimum revenue requirement is a critical factor for prospective Buildingstars franchisees to consider. Failure to achieve this benchmark can lead to territory modification or even termination of the franchise agreement, without a chance to improve. Franchisees should carefully evaluate their market potential and business capabilities to ensure they can consistently meet this requirement.