Under what conditions can Buildingstars discontinue the Insurance Program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the right to discontinue the insurance program at any time. If Buildingstars chooses to discontinue the program, they must provide prior written notice to the franchisee.
The insurance program, if a franchisee chooses to participate, provides general liability, workers' compensation, and employee dishonesty coverage. Franchisees participating in the insurance program pay an Insurance Program Fee of 3.5% of Gross Sales per month. This fee is paid by the 15th of the month following the month in which the sales were made, and Buildingstars withholds these amounts from the franchisee's total billings.
Buildingstars makes the insurance program available to qualified franchisees at its sole discretion and assumes no liability in connection with the program. The cost of the insurance is subject to change, and Buildingstars reserves the right to increase the Insurance Program fee. Prospective franchisees should consider the potential for these changes and the possibility of the program's discontinuation when evaluating the franchise opportunity.