What is the financed total initial franchise fee for the Buildingstars On-Site Manager program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
t shows the Initial Franchise Fee for each program.
| Minimum | Monthly | Note | Length of | ||
|---|---|---|---|---|---|
| Type of Franchise | Total Initial Franchise Fee | Down Payment | Payments | Amount | Note |
| TECHNICIAN | $995 (cash) | $695 | $100 | $600 | 6 months |
| (Note 1) | $1,295 (financed) $6,995 (cash) | ||||
| ON-SITE MANAGER | $7,995 (financed) | $3,995 | $200 | $4,000 | 20 months |
| (Note 2) | ($2,000 in Monthly Contract Revenue ) $36,995 (cash) | ||||
| CORPORATE | $46,995 (financed) | $6,995 | $2,000 | $40,000 | 20 months |
| (Note |
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the total initial franchise fee for the On-Site Manager program, when financed, is $7,995, assuming a Monthly Contract Revenue of $2,000. This fee includes a minimum down payment of $3,995. The remaining $4,000 is financed through a promissory note.
The promissory note requires monthly payments of $200 over a period of 20 months. This financing option allows prospective Buildingstars franchisees to begin operations with a lower upfront cash outlay, spreading the initial investment over a longer period.
It's important to note that the MCR Fee, which is part of the Initial Franchise Fee, is calculated differently depending on whether the fee is paid in cash or financed. When financed, the MCR Fee is 200% of the Monthly Contract Revenue, whereas it is 150% if paid in cash. This difference in MCR Fee calculation results in a higher total initial franchise fee when financed compared to paying in cash. Therefore, franchisees should carefully consider the long-term costs and benefits of financing versus paying the initial fee in cash.