When is the Audit Fee payable for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| 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 |
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Audit Fee is payable 30 days after billing. However, this fee is only charged if an audit reveals an understatement of at least 2% of Gross Sales for any month.
This means that a Buildingstars franchisee will not automatically incur an Audit Fee. It is conditional and depends on the accuracy of the reported Gross Sales. If Buildingstars suspects that a franchisee is underreporting their sales figures, they may conduct an audit.
If the audit confirms that the franchisee has underreported Gross Sales by 2% or more in any given month, the franchisee will be responsible for covering the cost of the audit. They will then have 30 days from the date of the billing to pay the Audit Fee. This policy incentivizes franchisees to maintain accurate financial records and report their Gross Sales truthfully.