Under what conditions may Buildingstars make insurance coverage available to franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
equire FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require. Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests. BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs. BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE. If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.E above.
If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall reimburse BUILDINGSTARS for the costs of obtaining said insurance. In addition, BUILDINGSTARS may charge FRANCHISEE $100
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars may, at its sole option and from time to time, make insurance coverage available to franchisees. If a franchisee is eligible and wishes to participate in such insurance coverage, the franchisee will be required to pay an Insurance Program Fee.
If a Buildingstars franchisee fails to obtain or maintain adequate insurance, Buildingstars may, in its sole discretion, obtain insurance for the franchisee in the franchisee's name. The franchisee is then required to reimburse Buildingstars for the costs of obtaining said insurance. In addition, Buildingstars may charge the franchisee $100 for the first day and $25 a day for each additional day the franchisee does not have at least the minimum amount of insurance Buildingstars requires.
Buildingstars also reserves the right to change, modify, or discontinue the Insurance Program at any time. Furthermore, Buildingstars retains the right to terminate a franchisee's right to remain in the Insurance Program at any time upon prior written notice to the franchisee, for any reason, including, but not limited to, the franchisee's failure to comply with any of the terms of the Franchise Agreement.