Under what condition will a Buildingstars franchisee receive a credit against the Initial Franchise Fee for the Corporate and On-Site Manager Program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not already an On-Site Manager Program franchisee, you must pay the Initial Franchise Fee in full when this Agreement is signed. If you are in good standing under your On-Site Manager Program Franchise Agreement, the initial franchise fee paid under the On-Site Manager Program Franchise Agreement will be credited against the Initial Franchise Fee and amounts paid for Account Sales Fees. You will either pay the balance of the Initial Franchise Fee upon execution of the Corporate Franchise Agreement or pay a portion of the Initial Franchise Fee and sign a promissory note for the balance upon execution of the Corporate Franchise Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee in good standing under their On-Site Manager Program Franchise Agreement will receive a credit against the Initial Franchise Fee for the Corporate Program. This credit also applies to amounts paid for Account Sales Fees under the On-Site Manager Program. This means that if an existing Buildingstars On-Site Manager franchisee decides to upgrade to a Corporate Program franchise, the initial franchise fee they originally paid for the On-Site Manager Program, as well as any Account Sales Fees, will be deducted from the Corporate Program's initial franchise fee.
The franchisee will then be responsible for paying the remaining balance of the Corporate Program's Initial Franchise Fee. They can either pay the balance in full upon signing the Corporate Franchise Agreement or finance a portion of it by paying a part of the fee upfront and signing a promissory note for the remaining amount. This arrangement can significantly lower the upfront investment required to transition to a Corporate Program franchise for eligible Buildingstars franchisees.
It is important to note that even as a franchisee in the On-Site Manager Program, there is no guarantee that Buildingstars will offer a Corporate Program franchise. The FDD also states that the Initial Franchise Fee for all programs is fully earned when paid and is non-refundable under any circumstances. Therefore, franchisees should carefully consider their long-term goals and financial situation before investing in any Buildingstars franchise program.