How to Finance a BuildingStars Franchise: Costs and Contracts
By Chris Cornella
A BuildingStars franchise loan is usually a smaller, more focused request than financing a restaurant or retail franchise. Commercial cleaning does not need a storefront or a build-out, so the money goes toward the franchise itself, cleaning equipment and supplies, transportation and the cash needed to carry payroll while new accounts begin.
This article explains how BuildingStars franchises are structured, what to read in the franchise disclosure document before you borrow, why SBA loans are not the usual route for this brand at present, and which financing tools fit a commercial cleaning business. The franchisor’s current fee schedule and investment table were not available for us to verify, so we show where to find each figure rather than quoting it.
US Professional Funding is not affiliated with, sponsored by or endorsed by BuildingStars; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current disclosure document and franchise agreement with a franchise attorney and accountant before you sign.
BuildingStars Franchise Loan at a Glance
- Concept: a commercial cleaning and janitorial brand that says it has been in business since 1994 and operates in over 15 major cities in the United States.
- Business model: according to the company, it handles bidding and sales, manages client operations and handles invoicing and collections, while franchisees perform the scheduled cleaning services.
- Initial franchise fee, royalty and other fees: set out in Items 5 and 6 of the current Franchise Disclosure Document (FDD).
- Estimated initial investment: listed in Item 7 of the FDD; there is no build-out, so equipment, supplies, transportation and working capital make up much of the total.
- SBA Franchise Directory: BuildingStars is not currently listed, so conventional loans, equipment financing and personal resources are the practical tools.
- Franchisor financing: check Item 10 of the FDD for any financing the franchisor itself offers.
What Is BuildingStars?
BuildingStars is a commercial cleaning brand serving offices and other commercial buildings. The company says it has been in business since 1994 and operates in over 15 major cities across the United States, and it actively seeks franchisees to provide cleaning services to its clients.
How the model works. The company describes a division of labor: it handles the bidding and sales process, manages client operations, and handles invoicing and collections, while the franchisee performs the scheduled services. For a borrower, this matters because the franchisee does not have to build a sales team or chase receivables, but it also means the franchisee’s revenue depends on the accounts the company provides and on keeping those clients satisfied.
Why lenders view janitorial franchises the way they do. Lenders like the recurring nature of contract cleaning and the low fixed overhead. They are more cautious because there is little hard collateral, revenue depends on account retention, and labor is the largest cost. A BuildingStars franchise loan is therefore underwritten largely on the owner’s personal credit, liquidity and plan to staff the accounts.
BuildingStars Franchise Costs
All franchise costs are disclosed in the FDD, which the franchisor updates periodically. Request the current version and read Items 5, 6, 7 and 10 before you apply for a loan.
Initial franchise fee. Item 5 lists the fee and how it is paid. In many janitorial systems the fee relates to the level of initial business the franchisor commits to provide, so read carefully what your fee includes and what happens if accounts are lost or not delivered.
No real estate or build-out. Cleaning is performed at client sites, so most owners need no commercial lease beyond perhaps a small storage space. That keeps the loan request small compared with location-based franchises.
Equipment and supplies. Vacuums, floor scrubbers and burnishers, carpet extraction equipment, carts, chemicals and dispensers, safety gear and uniforms.
Transportation. A reliable vehicle to move crews and equipment between buildings, often during evening hours.
Opening costs and working capital. Insurance and bonding, licenses, training and payroll for the first weeks of each new account.
Total investment. Expect the Item 7 table to include line items such as:
- Initial franchise fee
- Cleaning equipment
- Opening supplies and chemicals
- Insurance and bonding
- Licenses and permits
- Training-related expenses
- Vehicle or transportation costs
- Additional funds for the initial operating period
Match your loan request to the Item 7 total for the package you choose, and confirm which items the franchisor supplies.
Ongoing Fees and How They Affect Your Loan
Royalty and management fees. Item 6 lists the royalty and any management or administrative fees. Because the company bills clients and handles collections, ask whether fees are deducted from your payouts and exactly how your payments are calculated.
Other fees. Look for insurance, additional account, transfer and renewal fees in Item 6.
How lenders factor these costs in. Lenders start from the contract revenue on your accounts, subtract every franchisor fee, then subtract labor, supplies, insurance and vehicle costs. What remains must cover loan payments with a cushion. Because labor is the biggest expense, a realistic wage and staffing plan is central to any BuildingStars franchise loan request.
Franchisor Requirements for New Owners
We could not verify BuildingStars’ current net worth, liquidity or experience requirements from the company’s own materials. Ask the franchise development team for them and for the current FDD.
Questions to ask. Clarify how accounts are assigned, how quickly initial business is delivered, what training is provided, whether you must work the accounts yourself or can manage crews, and what support exists if a client cancels.
The approval process. Expect an introductory meeting, a review of the FDD, an application and a signed franchise agreement. Raise financing early so funding is in place before your first accounts begin.
Ways to Own a BuildingStars Franchise
Starting a new franchise. A new owner signs the franchise agreement, buys equipment and supplies, completes training and begins servicing accounts. Lenders underwrite on the owner’s credit and plan. See our franchise start-up financing page for how these loans are sized.
Buying an existing franchise. An existing owner may sell an established book of accounts, equipment and trained crews, subject to franchisor approval. Lenders can review actual revenue and account history. Read our guide to buying a franchise resale, and see cleaning business acquisition financing.
Growing your book of business. Owners who perform well may take on more accounts, which brings new needs for equipment, crews and working capital.
Financing Options for a BuildingStars Franchise
Conventional term loans. A conventional business loan can finance the franchise fee, equipment and opening costs for borrowers with good credit and enough liquidity. Terms and collateral requirements vary, and every request is underwritten individually.
SBA 7(a) loans. The SBA 7(a) program is widely used for franchises, but SBA lenders generally require the brand to be on the SBA Franchise Directory. See the SBA section below.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. A cleaning franchise generally has neither, so 504 rarely fits.
Equipment financing. Floor machines, carpet extractors, vacuums and vehicles can be financed or leased separately, which keeps cash free for payroll. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. Crews must be paid on schedule even when collections and franchisor payouts follow a monthly cycle, and new accounts add payroll before revenue arrives. See our cleaning business working capital options.
Seller financing on resales. A seller may agree to carry part of the price of an existing franchise. Any seller note is typically subordinate to the senior loan, and the franchisor must approve the transfer.
SBA Loans and BuildingStars Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for SBA eligibility.
BuildingStars is not on the SBA Franchise Directory. In plain terms, an SBA-guaranteed loan for a BuildingStars franchise is generally not available as things stand, and buyers should plan on conventional financing, equipment financing and personal funds. The absence of a listing is not a judgment about the brand. Directory status can change, so confirm it with your lender when you apply.
If the brand were ever added, the SBA 7(a) program maximum is currently $5 million, though program rules can change. For a business of this type, the more practical question is how much conventional and equipment financing your personal credit and liquidity support.
How Lenders Evaluate a BuildingStars Deal
Personal credit and financial history. With little collateral, personal credit carries more weight. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want to see the cash you are contributing and reserves left after closing to cover payroll if an account ends.
Industry and management experience. Cleaning, facilities or crew supervision experience strengthens a request, as does a plan for hiring and retaining staff.
Business plan and projections. Projections should build revenue account by account, subtract every franchisor fee, and use realistic labor hours and wages for each building.
The FDD and franchise agreement. Lenders review the term, renewal, transfer conditions, any account guarantees and what happens if accounts are lost. They also note whether Item 19 includes financial performance representations. Our guide to reading a Franchise Disclosure Document for financing explains which items matter most.
Historical financials for resales. Expect to provide revenue by account, payroll records and tax returns for an existing franchise.
Accounts, Equipment and Cash Flow
Account concentration. If one or two buildings make up most of your revenue, losing one hurts. Lenders will ask how diversified your accounts are. Our article on commercial cleaning contracts explains how contract terms affect financing.
Equipment. Commercial floor care equipment wears out with heavy use. Plan for replacement and consider financing larger machines separately from the franchise purchase.
Cash flow timing. Because the company handles invoicing and collections, your payout schedule depends on its cycle. Map that timing against weekly or biweekly payroll before you borrow.
Growing Your BuildingStars Business
Growth in a cleaning franchise usually means taking on more buildings rather than opening new locations. Each new account adds labor, supplies and sometimes equipment before the first payout.
Financing growth. Once you have operating history, lenders can underwrite actual account revenue to support equipment purchases or a line of credit. Our page on cleaning business expansion financing covers these requests.
Real-World Scenarios
A first-time owner starting out. A former facilities supervisor signs a franchise agreement, uses savings for the franchise fee, finances a floor machine and van, and keeps a working capital reserve for the first payroll cycles.
A buyer acquiring an established franchise. A buyer purchases an existing franchise with a stable group of accounts. A conventional term loan funds most of the price, a small seller note is subordinated, and the franchisor approves the transfer.
An owner adding accounts. An operator who has grown steadily adds several large buildings and uses a line of credit to carry payroll until payouts catch up.
Common Mistakes to Avoid
- Assuming an SBA loan is available for a brand that is not on the SBA Franchise Directory
- Underestimating labor hours and wages for each building
- Not understanding what happens if an assigned account is lost
- Ignoring the payout cycle when planning payroll
- Relying on too few accounts for most of the revenue
- Leaving no reserve for equipment repairs or replacement
For more pitfalls, read about the loan mistakes cleaning and restoration owners make.
Next Steps to Finance Your BuildingStars Franchise
Step 1: Get the current FDD. Read Items 5, 6, 7, 10, 17 and 19 closely.
Step 2: Clarify the account model. Ask how accounts are assigned, how payouts work and what happens if a client cancels.
Step 3: Talk with a financing specialist. Learn what conventional and equipment financing your credit supports. Our conventional loan calculator can help with early payment estimates, which are for planning only.
Step 4: Build your labor plan. Estimate hours, wages and crew size for each expected account.
Step 5: Prepare your loan package. Gather tax returns, a personal financial statement, the FDD, the franchise agreement and your projections.
Step 6: Close and start servicing accounts. Fund equipment and working capital before your first accounts begin.
BuildingStars Franchise Loan FAQs
How much does a BuildingStars franchise cost?
The estimated initial investment is in Item 7 of the current FDD. Costs are lower than location-based franchises because there is no build-out.
What is the BuildingStars franchise fee?
The fee is disclosed in Item 5. Read what level of initial business or support the fee includes.
Can I get an SBA loan for a BuildingStars franchise?
BuildingStars is not currently listed on the SBA Franchise Directory, so SBA financing is generally not available. Buyers typically rely on conventional loans, equipment financing and personal funds.
Does BuildingStars offer financing?
Check Item 10 of the current FDD, which discloses any financing the franchisor offers.
Can I finance cleaning equipment separately?
Yes. Floor machines, extractors, vacuums and vehicles can be financed or leased apart from the franchise purchase.
Can I buy an existing BuildingStars franchise?
Yes, with the franchisor’s approval. Lenders will review the account history and revenue of the business you are buying.
Can a first-time owner get a BuildingStars franchise loan?
Yes, if you have solid personal credit, some liquidity and a credible staffing plan. Cleaning or supervisory experience helps.
How long has BuildingStars been in business?
The company says it has been in business since 1994.
How long is the franchise term?
The term and renewal rights are described in Item 17 of the FDD.
Does BuildingStars publish earnings information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A BuildingStars franchise loan is less about collateral and more about cash flow: the accounts you service, the fees you pay and the crews you employ. Without an SBA Franchise Directory listing, conventional and equipment financing are the main tools, so strong personal credit, a realistic labor plan and a cash reserve make the biggest difference.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and cleaning and restoration financing solutions.
