When is Gross Revenue calculated 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 calculated when services or products are delivered or rendered. Gross Revenue is defined as the total money or property earned by the franchisee in connection with the operation of the Business. This includes all fees and other charges for every type of service performed and goods and services sold.
However, the term "Gross Revenue" does not include applicable sales, use, or service taxes, nor does it include any refunds and allowances actually given to customers. This means that Buildingstars franchisees only pay royalties and fees on the actual revenue they keep after taxes and customer refunds.
Understanding how Gross Revenue is calculated is important for a prospective Buildingstars franchisee because it directly impacts the royalty, management, administration, and insurance program fees they will owe to Buildingstars. These fees are calculated as a percentage of Gross Revenue, so accurately tracking and reporting revenue is essential for financial planning and compliance with the franchise agreement.