Under what circumstances will a Buildingstars franchisee be charged 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's 2025 Franchise Disclosure Document, a Non-Performance Fee may be charged to a franchisee under specific circumstances related to customer complaints and the failure to meet Buildingstars' standards. The purpose of this fee is to encourage franchisees to give full attention to customer needs and maintain the quality standards expected of the Buildingstars brand.
Specifically, if Buildingstars receives a legitimate complaint from a customer, the franchisee will initially be given a 24-hour window to resolve the issue. If the franchisee successfully addresses and remedies the complaint within this timeframe, no Non-Performance Fee will be charged. However, if the complaint remains unresolved or is not adequately addressed after the 24-hour period, Buildingstars reserves the right to step in and resolve the complaint themselves.
In the event that Buildingstars intervenes to resolve a customer complaint, the franchisee will be charged a Non-Performance Fee. This fee is calculated at a rate of $25 per hour per person needed to resolve the complaint. In addition to the hourly rate, the franchisee will also be responsible for covering any actual out-of-pocket expenses incurred by Buildingstars in the process of resolving the complaint. Buildingstars will then deduct the Non-Performance Fee from the payments it collects on behalf of the franchisee.