Under what conditions may Buildingstars offer new customer accounts to a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
iness as described in Section VII.A below, BUILDINGSTARS shall offer FRANCHISEE customer accounts which would generate at least $1,000 in Monthly Contract Revenues. FRANCHISEE will then follow the procedure set forth in the Confidential Operations Manual for accepting or rejecting said customer accounts. Once BUILDINGSTARS has offered FRANCHISEE customer accounts which total $1,000 in Monthly Contract Revenues, regardless of whether the FRANCHISEE accepts these accounts, BUILDINGSTARS' obligations under this Section VI.E shall be deemed satisfied.
- F. New Customer Accounts. BUILDINGSTARS may offer new customer accounts or increase the existing customer accounts to FRANCHISEE if: (i) FRANCHISEE is in full compliance with the terms of this Agreement; (ii) FRANCHISEE has provided satisfactory services to its existing customers; and (iii) FRANCHISEE'S Monthly Contract Revenue does not exceed $5,000 per month. FRANCHISEE acknowledges that BUILDINGSTARS has no obligation to offer new customer accounts or increase an
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars may offer new customer accounts or increase existing customer accounts to a franchisee if three conditions are met. First, the franchisee must be in full compliance with the terms of the Franchise Agreement. Second, the franchisee must have provided satisfactory services to its existing customers. Third, the franchisee's Monthly Contract Revenue must not exceed $5,000 per month.
However, the FDD also states that Buildingstars has no obligation to offer new customer accounts or increase existing customer accounts, even if these conditions are met. If Buildingstars does offer a new customer account, the franchisee must follow the procedures outlined in the Confidential Operations Manual for accepting or rejecting the account. The franchisee is under no obligation to accept any customer accounts offered by Buildingstars.
Furthermore, a Buildingstars franchisee has the right to return any customer account to Buildingstars, provided they give at least ten days prior written notice. The franchisee will not be entitled to any compensation for returning the account. This provides some flexibility for franchisees who may find an account unsuitable or unmanageable.
These conditions and stipulations are important for prospective franchisees to consider. While Buildingstars may offer new accounts under certain conditions, there is no guarantee of additional business. Franchisees should carefully evaluate their capacity and performance to ensure they meet the criteria for new customer accounts and understand their rights and responsibilities regarding accepting or rejecting accounts.