Under what circumstances will Buildingstars charge a Non-Performance Fee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
s Sales from the Business throughout the term of this Agreement. For example, the Royalty Fee for February is payable by March 15th. BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Royalty Fee is refundable. Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of thirty percent (30%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
- B. Non-Performance Fee. In order to encourage full attention to Customer needs, a Non-Performance Fee will be charged if BUILDINGSTARS' standards have not been followed resulting in a Customer's complaint in which BUILDINGSTARS intervenes to resolve. If BUILDINGSTARS receives a bona fide complaint from a Customer, BUILDINGSTARS will first offer FRANCHISEE an opportunity to remedy the Customer's complaint. If FRANCHISEE remedies the complaint within a twenty-four (24) hour period after BUILDINGSTARS is notified of the Customer's complaint, BUILDINGSTARS will
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a Non-Performance Fee is charged to encourage franchisees to fully address customer needs. Specifically, Buildingstars will levy this fee if their standards are not met, resulting in a customer complaint that requires Buildingstars to intervene.
However, Buildingstars first offers the franchisee an opportunity to resolve the customer's complaint within a 24-hour period after Buildingstars is notified. If the franchisee successfully remedies the complaint within this timeframe, Buildingstars will not charge the Non-Performance Fee.
If the complaint is not adequately resolved after the 24-hour period, Buildingstars has the right, but not the obligation, to step in and fix the issue themselves. In such cases, Buildingstars will charge the franchisee a Non-Performance Fee of $25 per hour per person needed to resolve the complaint, in addition to any out-of-pocket expenses incurred. This fee will be withheld from the payments Buildingstars collects on behalf of the franchisee.