What constitutes 'Gross Sales' for a Buildingstars franchise, and how is it calculated?

According to Buildingstars's 2025 Franchise Disclosure Document, "Gross Sales" are defined as the total income a franchisee earns from operating their Buildingstars franchise. This includes all fees and charges for every type of service performed, as well as goods and services sold. Gross Sales are calculated when the services or products are delivered or rendered. However, the term excludes applicable sales, use, or service taxes, and any refunds or allowances actually given to customers. The FDD notes that "Gross Sales" may also be referred to as "Gross Revenues."

Buildingstars franchisees are required to pay several fees based on a percentage of Gross Sales, including a Royalty Fee, Management Fee, Administration Fee, and Insurance Program Fee. These fees are typically deducted on the 15th of each month. The Royalty Fee is generally 10% of Gross Sales, but can increase to 20% or 30% for On-Site Manager and Corporate programs, respectively, on Gross Sales attributable to Specialty Work. The Management Fee varies depending on the program, with Technician Program franchisees paying 20%, On-Site Manager Program franchisees paying 10%, and Corporate Program franchisees paying 0%.

The Administration Fee is 5% of Gross Sales, and the Insurance Program Fee is 3.5% of Gross Sales. These fees are also deducted monthly. Buildingstars withholds these fees from the billings collected on behalf of the franchisee. Franchisees should be aware that an audit fee may be imposed if an audit reveals an understatement of at least 2% of Gross Sales for any month. Understanding the definition and calculation of Gross Sales is crucial for Buildingstars franchisees to accurately calculate and pay the required fees.