Buildingstars Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$113,700 - $287,500
Franchise Fee
$50,000
Min Cash Required
$60,000
Total US Locations
1,134
Business Summary
Buildingstars International, Inc. operates as a subfranchisor under its brand and system, offering master franchises that market and sell unit franchises (subfranchises) to individuals. These subfranchises provide commercial cleaning services, including janitorial work, restroom sanitation, vacuuming, dusting, carpet cleaning, and trash removal, to the general public on commercial premises. Buildingstars International, Inc. also trains and assists these subfranchisees, obtains customer accounts for them, provides billing and collection services, and operates its own cleaning business within its development area.
Corporate History
Buildingstars International, Inc. was incorporated in Missouri on December 22, 2008. The company began offering subfranchises (master franchises) in December 2009, temporarily ceased offering them in 2019, and resumed sales in Spring 2024. In early 2012, Buildingstars International, Inc. became a subsidiary of Facility Brand, Inc. Through its affiliate, Buildingstars, Inc. (originally Advantage Building Services, Inc., incorporated in 1994), it licenses the 'Buildingstars' marks. Another subsidiary, Buildingstars Management, Inc., has operated a similar business since 1999 and began offering cleaning service franchises (Subfranchise Businesses) in January 2000. Buildingstars International, Inc. also has affiliates involved in cleaning supply sales.
Financial Overview
Investment Range
$113,700 - $287,500
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$150,000
Minimum Cash Required
$60,000
Royalty %
5%
Equipment Costs (Low)
$8,000
Equipment Costs (High)
$15,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Buildingstars International, Inc. appears to be in sound financial health. Its auditors have provided an unqualified opinion on the consolidated financial statements for the years ending December 31, 2023, 2022, and 2021. As of December 31, 2023, the company reported positive working capital of $2,455,270 and a net income of $8,227,718 for the year, indicating strong operational performance. There are no disclosed concerns about the company's ability to continue as a going concern.
Financing Details
Buildingstars International, Inc. does not offer any direct or indirect financing to its subfranchisees, nor does it guarantee their notes, leases, or obligations. Subfranchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
1,134
Franchised Units
1,121
Corporate Units
13
Avg Square Footage
750
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Buildingstars International, Inc. has no litigation to report in this section, indicating a clean legal history concerning material litigation or bankruptcy proceedings as of the FDD issuance date.
Bankruptcy History
Buildingstars International, Inc. has no bankruptcy history to report in this section, indicating that neither the franchisor nor its management have been involved in bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their master franchise agreement, Buildingstars International, Inc. subfranchisees must provide written notice between seven and twelve months before the current term expires. They must not be in default of their agreement and must pay a renewal fee equal to 25% of the then-current Initial Master Franchise Fee for a development area of their size. Subfranchisees will also need to sign the then-current Master Franchise Agreement, which may have materially different terms and conditions, and execute a general release of claims against Buildingstars International, Inc. and its affiliates.
Training & Support Program
Franchisor Assistance
Buildingstars International, Inc. provides master franchisees with assistance both before and during the operation of their business. Before opening, Buildingstars International, Inc. helps designate the development area, approves the subfranchisee's office location, provides approved suppliers or minimum standards for products and services, and loans a copy of its Confidential Operations Manual. It also provides the template Franchise Disclosure Document and Subfranchise Agreements for the master franchisee's use. Initial training, lasting approximately one week, is conducted at Buildingstars International, Inc.'s principal office in St. Louis, Missouri, for the principal owner and one employee. During operation, Buildingstars International, Inc. furnishes updates to the FDD and Subfranchise Agreements, and may offer additional guidance, training, and assistance for a reasonable fee plus expenses. Sales and marketing materials may also be made available for purchase and loans a copy of its Manual.
Initial Training Hours
80
Training Location
St. Louis County, Missouri
Ongoing Support
Buildingstars International, Inc. provides ongoing support by furnishing additional guidance, training, and assistance as deemed necessary, for which a reasonable fee and expenses may be charged. Buildingstars International, Inc. may also make sales and marketing materials available for purchase and loans a copy of its Confidential Operations Manual for the duration of the agreement. Additionally, Buildingstars International, Inc. may require subfranchisors or their employees to attend refresher training programs or seminars, which would be conducted at its principal office or other designated locations, with travel and living expenses paid by the subfranchisor.
Franchise Requirements
Ideal Candidate Profile
Buildingstars International, Inc. seeks subfranchisors or their principal owners who are committed to devoting their full time and best efforts to the operation and management of their Master Franchise Business. Ideal candidates should possess strong management skills, experience, and business acumen. They must be willing to satisfactorily complete Buildingstars International, Inc.'s Initial Training Program and agree to maintain confidentiality, non-competition, and non-solicitation provisions. Candidates should also be capable of understanding and complying with federal, state, and local franchise laws, and be prepared to hire legal and accounting professionals for setup and registration. Additionally, they should have at least $60,000 in liquid working capital available at all times.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Full-Time
Territory Type
exclusive
Territory Size Requirements
Buildingstars International, Inc. development areas are mutually agreed upon with the subfranchisor and are generally designated by specific counties, cities, or metropolitan areas. The size of the territory is typically based on a population density of $5,000 per 100,000 people, as estimated by the United States Census Bureau's Metropolitan Statistical Areas. The territory size can also vary based on the quality and quantity of commercial establishments and other demographic considerations within the proposed development area.
Staffing Notes
Buildingstars International, Inc. notes that subfranchisors are responsible for hiring and maintaining a staff of qualified and competent employees for their Master Franchise Business, with staffing levels determined by sound business practices. While Buildingstars International, Inc. may provide sample employment policies and procedures for optional use, subfranchisors are solely responsible for all hiring decisions and employee-related obligations. The Confidential Operations Manual outlines further details on an organizational chart and personnel categories including telemarketers, sales personnel, operations personnel, administrative personnel, and outsourcing options.