Under what circumstances must a Buildingstars franchisee reimburse Buildingstars for expenses and costs?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
s due after the first full month you provide service to the new customer.
- Note 3: You have to reimburse us for expenses and costs we incur to remedy complaints of your customers.
- Note 4: By the 15th of every month, you must pay us an Administration Fee equal to 5% of the Gross Sales of the previous month. We will withhold the Administrative Fee from the amount of billings which we collect on your behalf.
- Note 5: Currently we are able to purchase general liability, workers compensation and employee dishonesty coverage for you. If you decide to participate in this insurance program, you will pay us by the 15th day of the month following the month in which the sales were made, an Insurance Program Fee of 3.5% of Gross Sales per month throughout the term of the Franchise Agreement. We have the right to increase the Insurance Program. We will withhold these amounts from the total billings which we collect on your behalf. The cost of the insurance is subject to change. We make this program available to qualified franchisees and will continue to do so in our sole discretion, but assume no liability in connection therewith. We reserve the right to discontinue the program at any time upon prior written notice to you.
- Note 6: We may provide additional or refresher training programs. You will pay a reasonable fee for any additional or refresher training programs as well as all transportation, lodging, meals and other expenses incurred by you and your employees in attending such programs.
- Note 7: Interest begins from the date of underpayment.
- Note 8: You agree to indemnify and/or reimburse us and our affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Franchised Business or the license of any of our or our affiliates' intangible property to you (whether required to be paid by us or our affiliates, withheld by you or otherwise). Your obligation to indemnify or reimburse us or our affiliates for these taxes do not extend to income-type taxes which a state or local government imposes on us or our affiliates' income.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees may be required to reimburse Buildingstars for certain expenses and costs under specific circumstances. One instance is when Buildingstars incurs expenses and costs to resolve customer complaints that the franchisee failed to remedy. Additionally, franchisees must indemnify or reimburse Buildingstars and its affiliates for capital, gross receipts, sales, and other taxes and assessments imposed by state or local governmental authorities due to the franchisee's business operations or the use of Buildingstars's intangible property. However, this reimbursement obligation does not extend to income-type taxes imposed on Buildingstars or its affiliates' income.
Furthermore, if a Buildingstars franchisee fails to address a customer complaint within 24 hours, Buildingstars may step in to resolve it. In such cases, the franchisee will be charged a Non-Performance Fee of $25 per hour per person needed to resolve the complaint, in addition to any out-of-pocket expenses incurred by Buildingstars. This fee is payable immediately.
Finally, franchisees may incur costs for additional training programs. While the initial franchise fee covers training for two individuals, any further or refresher training programs will require the franchisee to cover a reasonable fee for the training itself, as well as all transportation, lodging, meals, and other related expenses for the franchisee and their employees attending the training.