Under what conditions can Buildingstars discontinue a franchisee's right to service a customer account?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Discontinue Right to Customer Account.
BUILDINGSTARS retains the right to discontinue allowing FRANCHISEE to service a Customer Account at any time if BUILDINGSTARS, in its sole discretion, determines that FRANCHISEE is not adequately servicing the customer account.
Factors which BUILDINGSTARS considers include, but are not limited to the following: Customer complaints, unresponsiveness to Customer or BUILDINGSTARS, allegations by Customer of theft or breakage, lateness or failure to complete the job in a professional manner.
In such event, BUILDINGSTARS does not have any obligation to replace said Customer Account with another.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars retains the right to discontinue allowing a franchisee to service a customer account at any time if Buildingstars, in its sole discretion, determines that the franchisee is not adequately servicing the customer account.
Factors that Buildingstars considers include customer complaints, unresponsiveness to the customer or Buildingstars, allegations by the customer of theft or breakage, lateness, or failure to complete the job in a professional manner. This means that Buildingstars has broad authority to remove accounts from a franchisee if they believe the service is not up to par.
If Buildingstars discontinues a franchisee's right to service a customer account, Buildingstars does not have any obligation to replace said customer account with another. This could significantly impact a franchisee's revenue, as they may lose income without an immediate replacement. Prospective franchisees should carefully consider the implications of this clause and ensure they have a clear understanding of Buildingstars's service expectations and quality control processes.