What is excluded from the calculation of 'Gross Revenue' for a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
D. "Gross Revenue" means the total money or property earned by FRANCHISEE or derived from or in connection with the operation of the Business, including all fees and other charges for every type of service performed and goods and services sold. Gross Revenue will be calculated at the time the services or products from which they were derived are delivered or rendered. The term does not include applicable sales, use or service taxes and any refunds and allowances actually given to Customers.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, 'Gross Revenue' is defined as the total money or property earned by the franchisee from the operation of the Business, including all fees and other charges for every type of service performed and goods and services sold. Gross Revenue is calculated at the time the services or products from which they were derived are delivered or rendered.
However, the calculation of Gross Revenue for a Buildingstars franchise specifically excludes applicable sales, use, or service taxes, along with any refunds and allowances actually given to customers. This means that a franchisee does not have to pay royalty fees or other percentage-based fees on these amounts.
This definition is important for Buildingstars franchisees because several fees, including the Royalty Fee, Management Fee, Administration Fee, and Insurance Program Fee, are calculated as a percentage of Gross Revenue. Therefore, understanding what is included and excluded from Gross Revenue directly impacts the amount of these fees that the franchisee will owe to Buildingstars. Accurately tracking and reporting revenue, taxes, refunds, and allowances is crucial for compliance and financial management.