What is excluded from the definition 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 operating the cleaning business. This includes all fees and charges for every type of service performed and goods and services sold. Gross Revenue is calculated when the services or products are delivered or rendered.
However, the definition of Gross Revenue for a Buildingstars franchisee specifically excludes applicable sales, use, or service taxes. Additionally, any refunds and allowances actually given to customers are also excluded from the calculation of Gross Revenue.
This definition is important because several fees payable to Buildingstars are calculated as a percentage of Gross Revenue, including the Royalty Fee (10%), Management Fee (20%), and Administration Fee (5%). Therefore, understanding what constitutes Gross Revenue, and what is excluded, is crucial for a franchisee to accurately calculate these fees and manage their finances.