Is the Administration Fee paid to Buildingstars refundable?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. 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 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 not refundable. Buildingstars franchisees must pay a monthly Administration Fee equal to 5% of gross sales throughout the agreement's term. Buildingstars withholds this fee from the billings it collects for the franchisee.
This non-refundable policy means that once the Administration Fee is paid, it will not be returned to the franchisee under any circumstances. This is a standard practice, as these fees are used to cover ongoing administrative and support services provided by Buildingstars.
Prospective franchisees should factor this non-refundable fee into their financial planning, understanding that it is a recurring expense that will impact their profitability. Franchisees should also be aware that underreporting gross sales could lead to audits, and any underpaid Administration Fees would need to be reimbursed with interest.