What is excluded from the 'Gross Sales' calculation 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' are defined as the total money or property earned by the franchisee in connection with the operation of the cleaning business. This includes all fees and other 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 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.
For a prospective Buildingstars franchisee, this means that when calculating the revenue on which royalties and other fees are based, they do not need to include taxes collected on behalf of the government or any money refunded to customers. This is a common practice in franchising, as franchisees are generally not expected to pay royalties on amounts they collect and remit to third parties or refund to customers.