Buildingstars Franchise Disclosure Document Analysis

Stacked Ongoing Fees Consume Substantial Share of Gross Revenue

Franchisees at the Technician level face combined ongoing fees of 38.5% of gross sales (10% royalty + 20% management + 5% administration + 3.5% insurance), all deducted directly from collected billings before the franchisee receives any payment.

Source: p.14

No Exclusive Territory Granted at Any Program Level

Franchisees at all three program tiers receive only a non-exclusive right to operate within a designated metropolitan area, with the franchisor retaining full rights to operate, franchise, or license other businesses using the same system and marks anywhere within that area.

Source: p.38

Renewal Requires Then-Current Agreement With Potentially Different Terms

Franchisees who wish to renew must sign the then-current franchise agreement, which may contain materially different fees, territory provisions, standards, or other terms from those in their original agreement.

Source: p.52