Under what conditions might Buildingstars make insurance coverage available to franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
STARS 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.F 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 for the first day and $25 a day for each additional day FRANCHISEE does not have at l
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. The Insurance Program Fee is described in Section IV.F of the agreement.
Buildingstars also has the right to require franchisees to increase the types and amounts of insurance coverage as Buildingstars may, in its sole discretion, reasonably require. The insurance required by Buildingstars is the minimum insurance requirements, and franchisees should consult with their own insurance agent to determine if the kinds and amounts of coverage are adequate to protect the franchisee's interests. Buildingstars makes no representation, express or implied, that the policies and amounts are sufficient for the franchisee's needs.
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, and the franchisee shall 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. Regardless of the insurance amounts Buildingstars requires, it shall be the responsibility of the franchisee to maintain adequate insurance coverage at all times during the term of and after the expiration of the Agreement. Failure of the franchisee to maintain coverage shall not relieve it of any contractual responsibility or obligation or liability under this Agreement.