Are you interested in investing in a Buildingstars franchise? If yes, then you’re in the right place. The Buildingstars franchise is not just a good investment, but it also has the potential to generate high profitability.
In this article, we will explore the details of the Buildingstars franchise and reveal some hidden facts related to their business policies.
About Buildingstars
Buildingstars was founded in 1994 as a commercial cleaning service corporation. They provide high-quality services in various settings, including general offices, educational institutions, and medical offices.
In 2000, Buildingstars began offering franchises, and it now has over 703 locations across the nation. Buildingstars is a low-cost franchise, listed in the Franchises Under $10k section, and ranks among the Franchise Business Review Top 200 franchises.
Known for being a top service provider, the franchise has good reviews. It also offers third-party financing and veterans discounts on the franchise fee.
Buildingstars Franchise Table
| Cost or Fee | Amount or Percentage |
|---|---|
| Initial Investment | $2,245-$8,295 |
| Franchise-Fee | $795-$1995 |
| Royalty-Fee | N/A |
| Liquidity | $955 |
| Area Requirement | N/A |
| Total Outlets | 703 |
Buildingstars Franchise Business Model
Buildingstars offers three different types of business models to franchisees:
- The Technician: Through the Smart Start Program, you can run a part-time cleaning business. This model only requires a fraction of the investment cost compared to other cleaning franchises and is the only part-time opportunity in the industry.
- The Onsite Manager: This model is for those already working as technicians who want to move into a full-time opportunity. Franchisees in this role manage larger accounts and a team of cleaning employees.
- Corporate: The largest program offered by Buildingstars, this model is for those with the expertise and resources to manage larger tenant office buildings and small corporations. It generates the highest average revenue of any cleaning franchise.
Buildingstars Franchise Revenue & Profit
| Years ended December 31 | |||
|---|---|---|---|
| 2021 | 2020 | 2019 | |
| REVENUES | $63,186,280 | $54,564,749 | $48,509,149 |
| COST OF REVENUE | 45,245,924 | 39,178,545 | 34,648,783 |
| GROSS MARGIN | 17,940,356 | 15,386,204 | 13,860,366 |
| OPERATING EXPENSES | |||
| General and administrative expenses | 10,204,617 | 8,416,494 | 7,579,748 |
| Depreciation and amortization | $307,150/td> | 282,776 | 13,860,366 |
| 10,511,767 | 8,699,270 | 7,863,674 | |
| OTHER INCOME | |||
| Paycheck protection | – | 688,700 | – |
| NET INCOME | $7,428,589 | $7,375,634 | $5,996,692 |
As you can see Buildingstars is a very profitable business for franchisor as they made as much as $7.42 million in 2021 as compared to $5.99 million in 2019.
However, the revenue and profit for Buildingstars franchises can differ. On average, Buildingstars Franchise owners make between $5,000 and $54,001, with a profit margin of 11.8% to 29.4%.
Ideal Candidates for Buildingstars Franchise
Ideal candidates for a Buildingstars franchise have a stable work history in cleaning services and a desire to supplement their income by being their own boss.
Strong management and leadership skills, along with excellent customer service, are also key to growing the business.
Training & Support
Buildingstars offers an initial training program to all new franchises. This program includes training on managing a customer base, handling bills, providing cleaning services, and creating marketing strategies.
They also offer customer service and marketing support, taking on the most challenging aspects of growing the business so franchisees can focus on service.
This training program is specially designed for new franchisees, and attendance is mandatory for the satisfaction of the franchisors.
Failure Rate Of Buildingstars
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 604 | 680 | +76 |
| 2020 | 680 | 688 | +8 |
| 2021 | 688 | 807 | +119 |
For the Franchised outlets:
- In 2019, the growth rate was (76)/604×100≈12.58%
- In 2020, the growth rate was (8)/680×100≈1.17%
- In 2021, the growth rate was (119)/688×100≈17.29%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 6 | 7 | +1 |
| 2020 | 7 | 8 | +1 |
| 2021 | 8 | 9 | +1 |
For the Company-Owned outlets:
- In 2019, the growth rate was (1)/6×100≈16.66%
- In 2020, the growth rate was (1)/7×100≈14.28%
- In 2021, the growth rate was (1)/8×100≈12.5%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 610 | 687 | +77 |
| 2020 | 687 | 696 | +9 |
| 2021 | 696 | 816 | +120 |
For Total outlets:
- In 2019, the growth rate was (77)/610×100≈12.62%
- In 2020, the growth rate was (9)/687×100≈1.31%
- In 2021, the growth rate was (120)/696×100≈17.24%
According to the above-mentioned data, there is no failure rate for both franchised outlets and company-owned outlets.
We can see that the franchised outlets for Buildingstars grew from 2019 to 2021, showing a growth rate between 12.58% and 17.29%.
On the other hand, for company-owned outlets, the growth rate of Buildingstars was also quite high, lying in the range between 16.66% and 12.5% for the same period.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Buildingstars franchise has expanded during 2019-2021, showing a total growth rate between 12.62% and 17.24%.
Payback Period Of Buildingstars
Based on the median franchise sales of Buildingstars, which is $21,000, we can calculate the payback period of the company.
| Initial investment (midpoint) | %Profit margin of median franchise sales | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $46,400 | 40% | $8,400 | 7 years |
| 50% | $10,500 | 6 years | |
| 60% | $12,600 | 5 years |
On the basis of the table above, at an average of 50% profit margin, it will take 6 years to recoup the amount of Buildingstar franchise investment.
Buildingstars Franchise Comparison
| Company | Buildingstars | The Maids |
|---|---|---|
| Founded In | 1994 | 1979 |
| Initial Investment | $2,245-$8,295 | $64,100 – $154,300 |
| Franchise-Fee | $795-$1995 | $12,500 |
| Liquidity | $955 | $50,000 |
| Total Outlets | 703 | 1585 |
| Annual Revenue | $30 million | $61.8 million |
Frequently Asked Question
How many Buildingstar franchises are there?
Buildingstar has more than 703 units across the U.S.
Is Buildingstars a low-cost investment franchise?
Yes, Buildingstars is the low-cost investment franchise and is also listed in the section for Franchises Under $10k.
Do Building Stars support finance?
Yes, Building Stars supports third-party finance.
Is Buildingstars a franchise?
Yes, Buildingstars is a franchise, and it operates more than 703 units nationwide.
How much does a Buildingstars franchise cost?
The franchise fee for a Buildingstars franchise is $795-$1995, and the cost of investment ranges from $2,245-$8,295.
Where is Buildingstars headquarters?
Buildingstars headquarters are located at 33 Worthington Access Dr, St. Louis, Missouri, 63043, United States.
Who is the founder of Buildingstars?
Buildingstars was founded in the year 1994 by Carlos Portillo and JaVana Brownfield.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.