How does Buildingstars collect the Administration Fee from its franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. Buildingstars collects this fee by withholding it from the billings they collect on behalf of the franchisee. This means that instead of the franchisee paying the fee directly, Buildingstars deducts it from the payments received from customers before disbursing the remaining amount to the franchisee.
The Administration Fee is due by the 15th of each month, covering the Gross Sales from the previous month. This consistent deduction method simplifies the payment process for franchisees, as it integrates the fee payment directly into the billing and collection cycle managed by Buildingstars.
This collection method ensures that Buildingstars receives the Administration Fee promptly and reduces the administrative burden on franchisees. However, franchisees should carefully track their Gross Sales to ensure the deducted amount aligns with their records and to address any discrepancies promptly. Understanding how fees are collected is crucial for managing cash flow and financial planning as a Buildingstars franchisee.