Buildingstars
Bottom line
- Total investment $114K – $288K including a $100K franchise fee.
- Average unit revenue of $2.2M/year (median $2.2M).
- Rated MODERATE with a risk score of 60/100.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Buildingstars unit return on the cash you put in?
Unlevered ROIC · per unit
110%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Buildingstars units return on equity?
Equity IRR · 5-yr
44.3%
6.26× MOIC
Year-1 DSCR
1.99×
EBITDA ÷ debt service
Equity required
$2.7M
on $11.0M purchase
Total debt
$8.3M
SBA $5.0M + senior + seller note
Overview
About
Buildingstars franchisees operate commercial cleaning and building maintenance services, managing client relationships, scheduling crews, and delivering janitorial/facility services. Day-to-day operations involve coordinating staff, maintaining service quality, managing client contracts, and handling operations for typically 2-8 accounts per franchisee.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Buildingstars presents elevated risk due to undisclosed net income, tiny unit count, franchisor financial distress (Going Concern), and lack of transparent royalty clarity.
Score breakdown · what drove the 60 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — cannot verify actual franchisee profitability despite $2.2M average revenue claim
- 02MINOROnly 15 units system-wide with unknown growth trajectory — insufficient data on unit economics and system momentum
- 03MINORHigh initial investment ($113.7K-$287.5K) relative to small franchise footprint raises sustainability questions
- 04HIGHGoing Concern issue = franchisor financial instability — red flag for support, training, and long-term viability
- 05MINORRoyalty structure (1-5% variable) lacks transparency — unclear what triggers higher percentages and actual franchisee burden
- 06HIGHNo litigation disclosed but Going Concern status suggests financial distress that may precede legal action
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Buildingstars · FDD (2024) PDF