Is the Buildingstars Administration Fee 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' 2025 Franchise Disclosure Document, the Administration Fee is not refundable. Franchisees must pay Buildingstars an Administration Fee monthly, which is equal to 5% of the gross sales from the business. Buildingstars withholds this fee from the billings it collects for the franchisee.
This means that once a Buildingstars franchisee pays the Administration Fee, they cannot get it back under any circumstances. This is a standard practice in franchising, as fees are typically used to cover the franchisor's ongoing costs of supporting the franchise system.
Prospective franchisees should carefully consider this non-refundable aspect of the Administration Fee, as it represents a recurring expense that will impact their profitability throughout the term of the franchise agreement.