When is the Administration Fee deducted for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Administration Fee | 5% of Gross Sales | Deducted on the 15 th day of each month | See below for a more detailed explanation (Note 4) |
- Note 4: By the 15th of every month, you must pay us an Administration Fee equal to 5% of the Gross Sales of the previous month. We will withhold the Administrative Fee from the amount of billings which we collect on your behalf.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Administration Fee is 5% of Gross Sales and is deducted on the 15th day of each month. Specifically, Buildingstars withholds the Administrative Fee from the amount of billings it collects on the franchisee's behalf. This means that the fee is taken directly from the revenue generated by the franchise each month.
Gross Sales, as defined in the FDD, include all money or property earned from the operation of the business, including fees and charges for services performed and goods sold. Gross Sales are calculated when the services or products are delivered or rendered. However, Gross Sales do not include applicable sales, use, or service taxes, or any refunds and allowances actually given to customers.
For a Buildingstars franchisee, this means that 5% of their monthly revenue (excluding taxes and refunds) will be automatically deducted by Buildingstars on the 15th of the following month. This deduction is taken before the franchisee receives the remaining balance of their earnings. It is important for prospective franchisees to factor this ongoing fee into their financial projections and understand how it will impact their monthly cash flow.