Under what conditions is the Initial Franchise Fee fully earned and non-refundable for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Franchise Fee is fully earned when paid and non-refundable.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned and non-refundable once it is paid. This policy applies to both the Technician Program and the On-Site Manager Program. This means that regardless of whether the franchisee's business succeeds or if they later decide not to proceed with the franchise, Buildingstars will not refund the initial franchise fee.
This is a standard practice in the franchise industry, as the initial fee typically covers Buildingstars's expenses related to granting the franchise, including training, setting up the franchisee, and providing initial support. However, it's crucial for prospective franchisees to understand this policy and carefully evaluate the opportunity before paying the initial fee, as there are no circumstances under which it will be returned.
For franchisees who are already part of Buildingstars's system, such as those in the Technician Program or On-Site Manager Program, the initial franchise fee may be credited against the fee for a new franchise. However, the initial fee for the new franchise is still considered fully earned and non-refundable upon payment of the balance, even if a credit is applied from a previous agreement.