What is the Account Sales Fee for the On-Site Manager Program under a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
are not refundable under any circumstances.
ITEM 6. OTHER FEES*
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty Fee | 10% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation ( Note 1 ) |
| Management Fee: Technician Program On-Site Manager Program Corporate Program | 20% of Gross Sales 10% of Gross Sales 0% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation (Note 1) |
| Account Sales Fees: Technician Program On-Site Manager Program Corporate Program | None 200% of Monthly Contract Revenue 400% of Monthly Contract Revenue | Payment under a Promissory Note | See below for a more detailed explanation (Note 2) |
| Non-Performance Fee | $25 per hour per person needed to resolve complaint plus out of pocket expenses incurred | Immediately | If we receive a complaint from a customer and it is not remedied by you within 24 hours. ( Note 3 ) |
| Administration Fee | 5% of Gross Sales | Deducted on the 15 th day of each month | See below for a more detailed explanation (Note 4) |
| Insurance Program Fee | 3.5% of Gross Sales | Deducted on the 15 th day of each month | See below for a more detailed explanation ( Note 5 ) |
| Additional Training | Reasonable Fee | As incurred | Training for 2 persons is included in Initial Franchise Fee ( Note 6 ) |
| Late Payment Fee | The lesser of the maximum rate of interest due on open accounts or 1½% per month during the period of time payments are due | Payable on demand | See below for a more detailed explanation (Note 7) |
| Renewal Fee | $200 for Technician $1,000 for On-Site Manager $2,000 for Corporate | Payable on renewal | |
| Transfer Fee | Lesser of $4,000 or 10% of the total sales price of the Interest being transferred but not less than $1,500 (On-Site Manager and Corporate) | Payable on transfer | |
| Audit Fee | Cost of audit | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Gross Sales for any month |
| Failure to Carry Insurance | $100 for the first day and $25 for each add |
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Account Sales Fee for the On-Site Manager Program is 200% of the Monthly Contract Revenue. This fee is applicable when a franchisee requests a new customer account to service or if Buildingstars offers a new customer account that the franchisee wishes to service. The Monthly Contract Revenue refers to the revenue generated from the new customer account.
For a Buildingstars On-Site Manager Program franchisee, this means that if a new customer account generates, for example, $1,000 per month in revenue, the Account Sales Fee would be $2,000 (200% of $1,000). The franchisee has the option to pay the entire Account Sales Fee in cash or finance it through a Promissory Note.
If the franchisee chooses to finance the Account Sales Fee, they will make an initial payment of 1/20th of the total fee upon submitting the request for the new customer account. The remaining balance is then paid in 20 equal monthly installments, with the second payment due after the first full month of providing service to the new customer. This financing option can help franchisees manage their initial costs when taking on new accounts. It is important to note that the Account Sales Fee for the Corporate Program is higher, at 400% of the Monthly Contract Revenue.