How does Buildingstars collect the Royalty Fee from franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay to BUILDINGSTARS, monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), a Royalty Fee equal to ten percent (10%) of Gross Sales from the Business throughout the term of this Agreement.
For example, the Royalty Fee for February is payable by March 15th.
BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec.
VI.D. below.
No part of the Royalty Fee is refundable.
Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of twenty percent (20%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Royalty Fee is collected monthly. Specifically, Buildingstars franchisees are required to pay the Royalty Fee by the fifteenth day of the month following the month in which the sales were invoiced. For instance, the Royalty Fee for February is due by March 15th.
Buildingstars withholds the Royalty Fee directly from the billings it collects on behalf of the franchisee. This means that Buildingstars takes the Royalty Fee amount out of the payments received from customers before disbursing the remaining balance to the franchisee.
The standard Royalty Fee is ten percent (10%) of Gross Sales, but this increases to twenty percent (20%) or thirty percent (30%) for sales attributable to Specialty Work, depending on the franchise program. This withholding method provides Buildingstars with a direct and efficient way to collect its Royalty Fees, while also ensuring that franchisees promptly meet their financial obligations.