Under what payment terms are the Account Sales Fees paid for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Monthly Contract Revenue if you are a Corporate Program franchisee.
If you request the new customer account, which you must do in increments of $1,000 of Monthly Contract Revenue, you will pay us either the entire Account Sales Fee in cash or 1/20 of the amount of the Account Sales Fee when you submit the request which will serve as the first month's payment under the Promissory Note which you must sign. The Promissory Note is payable in 20 equal monthly installments. The second payment under the Promissory Note will be due after the first full month you have provided service to the new customer. The amount of the Promissory Note will be 200% (if you are in the On-Site Manager Program) or 400% (if you are in the Corporate Program) of the Monthly Contract Revenue.
If we offer you a new customer and you wish to accept the new customer, you will either pay us the entire Account Sales Fee in cash or execute a Promissory Note for the Account Sales Fee. This Promissory Note is payable in 20 equal monthly installments. The amount of the Promissory Note will be 200% (if you are in the On-Site Manager Program) or 400% (if you are in the Corporate Program) of the Monthly Contract Revenue. The first payment is due after the first full month you provide service to the new customer.
- Note 3: You have to reimburse us for expenses and costs we incur to remedy complaints of your customers.
- Note 4: By the 15th of every month, you must pay us an Administration Fee equal to 5% of the Gross Sales of the previous month. We will withhold the Administrative Fee from the amount of billings which we collect on your behalf.
- 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.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Account Sales Fees are payable under a Promissory Note. If a franchisee requests a new customer account, which must be done in increments of $1,000 of Monthly Contract Revenue, they can either pay the entire Account Sales Fee in cash or pay 1/20 of the amount as the first month's payment under a Promissory Note. This note must be signed, and the remaining balance is payable in 20 equal monthly installments. The second payment is due after the first full month of service to the new customer. The Promissory Note will amount to 200% of the Monthly Contract Revenue for On-Site Manager Program franchisees and 400% for Corporate Program franchisees.
If Buildingstars offers a new customer account that the franchisee wishes to accept, the franchisee can either pay the entire Account Sales Fee in cash or execute a Promissory Note for the Account Sales Fee. Similar to the previous scenario, this Promissory Note is payable in 20 equal monthly installments, with the first payment due after the first full month of service. The amount of the Promissory Note is 200% of the Monthly Contract Revenue for On-Site Manager Program franchisees and 400% for Corporate Program franchisees.
The Account Sales Fees differ based on the franchise program. For the Technician Program, there is no Account Sales Fee. For the On-Site Manager Program, the Account Sales Fee is 200% of the Monthly Contract Revenue, while for the Corporate Program, it is 400% of the Monthly Contract Revenue.