What is excluded from the calculation of 'Gross Sales' for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
D. "Gross Sales" 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 Sales 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, 'Gross Sales' for a franchisee is defined as the total money or property earned from the operation of the cleaning business, including all fees and charges for services performed and goods sold. This is calculated when the services or products are delivered.
However, the calculation of Gross Sales for a Buildingstars franchise specifically excludes applicable sales, use, or service taxes. Additionally, any refunds and allowances that are actually given to customers are also excluded from the Gross Sales calculation.
This definition is important for Buildingstars franchisees because the royalty fee and administration fee are calculated as a percentage of Gross Sales. Therefore, understanding what is included and excluded from this calculation directly impacts the amount of these fees that the franchisee will owe to Buildingstars. Franchisees should keep accurate records of sales, taxes collected, and any refunds or allowances provided to customers to ensure accurate reporting of Gross Sales and to avoid potential discrepancies or audits.