Under what circumstances may Buildingstars Management, Inc. withhold the monthly note payment from the amount of billings it collects for the undersigned?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| ess of FRANCHISEE: | |
|---|---|
| Date: | Date: |
| required to comply with and abide by such covenants and provisions. | For good and valuable consideration, the receipt of which is hereby acknowledged by each undersigned individual, each undersigned individual agrees to be personally bound by and personally liable for the breach of each of the provisions in Section IX (Trade Secrets and Confidential Information) and Section X (Restrictive Covenant) to the same extent as and for the same period of time as FRANCHISEE is |
| Print Name: | |
| Print Name: |
EXHIBIT I PROMISSORY NOTE
PROMISSORY NOTE
| For value received, the undersigned promise to pay to the order of BUILDINGSTARS |
|---|
| MANAGEMENT, INC.,, |
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars Management, Inc. may withhold the monthly note payment from the amount of billings it collects for the franchisee, as described in Section VI.D of the Franchise Agreement. The initial franchise fee is $1,295, which is payable upon the execution of the agreement. A down payment of $695 is due upon execution of the agreement, and the remaining $600 is represented by a Promissory Note. The note is payable without interest in six monthly installments of $100 each, with the first installment due 90 days after the execution of the agreement. A default under the note is considered a default under the agreement.
Buildingstars also withholds other fees from the franchisee's billings. These include a monthly royalty fee of 10% of gross revenue, a monthly management fee of 20% of gross revenue, a non-performance fee of $25 per hour per person (plus out-of-pocket expenses) if Buildingstars intervenes to resolve a customer complaint, a monthly administration fee of 5% of gross revenue, and an insurance program fee.
As a practical matter, this means a Buildingstars franchisee should be aware that Buildingstars has the right to deduct these fees, including the monthly note payments, from the payments it collects on the franchisee's behalf. The franchisee needs to understand the conditions under which these deductions will occur to manage their cash flow and financial obligations effectively. It is important to review Section VI.D of the Franchise Agreement to fully understand the specific circumstances under which Buildingstars may withhold these payments.