factual

When is the Buildingstars Administration Fee due each month?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

  • E.

Administration Fee.

FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Sales from the Business throughout the term of this Agreement.

BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below.

No part of the Administration Fee is refundable.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the Administration Fee is due monthly, specifically by the fifteenth (15th) day of the month following the month in which the sales were invoiced. This means that if a Buildingstars franchisee makes sales in February, the Administration Fee for those sales is due by March 15th. The Administration Fee is equal to five percent (5%) of the Gross Sales from the Business. Buildingstars will withhold the Administration Fee from the amount of billings Buildingstars collects for the franchisee.

This payment schedule is typical in franchising, where fees are often tied to the previous month's sales. It allows the franchisee to collect revenue before paying the associated fees. However, franchisees must carefully manage their cash flow to ensure they have sufficient funds to cover the Administration Fee by the due date.

It is important to note that no part of the Administration Fee is refundable, regardless of the circumstances. Franchisees should factor this non-refundable aspect into their financial planning and projections. Additionally, Buildingstars has the right to audit the franchisee's records to ensure accurate reporting of Gross Sales. If underreporting is discovered, the franchisee will be responsible for the underpaid Administration Fees, along with interest and potential audit costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.