By what day of the month must a Buildingstars franchisee pay the Administration Fee?
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's 2025 Franchise Disclosure Document, a franchisee is required to pay the Administration Fee monthly, specifically by the fifteenth (15th) day of the month. This payment schedule is based on the sales invoiced in the preceding month. For example, the Administration Fee for sales invoiced in February is due by March 15th.
Buildingstars withholds the Administration Fee directly from the billings it collects on behalf of the franchisee. This fee is non-refundable, meaning that once paid, it cannot be recovered under any circumstances. The Administration Fee is equal to five percent (5%) of the Gross Sales from the Business throughout the term of the Franchise Agreement.
This payment structure ensures a consistent and timely flow of revenue to Buildingstars, while also simplifying the payment process for franchisees by directly deducting the fee from collected billings. Franchisees need to manage their cash flow accordingly to ensure funds are available to cover this fee each month. Understanding this payment schedule is crucial for financial planning and operational management for any prospective Buildingstars franchisee.