When are Gross Sales calculated 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 calculated when the services or products are delivered or rendered. Gross Sales include all money or property earned by the franchisee from operating the Business, including all fees and charges for services performed and goods sold. However, Gross Sales do not include applicable sales, use, or service taxes, or any refunds and allowances actually given to customers.
Buildingstars franchisees must report and pay fees like the Royalty Fee, Administration Fee, and Insurance Program Fee (if applicable) based on these Gross Sales figures. Underreporting Gross Sales can lead to audits, and if discrepancies exceed 2%, the franchisee will be responsible for covering the underpaid fees, interest, and audit expenses.
Therefore, it is important for prospective Buildingstars franchisees to understand exactly what constitutes Gross Sales and when these sales are calculated to ensure accurate reporting and avoid potential penalties. Franchisees should maintain meticulous records of all transactions, including services rendered, goods sold, and any applicable taxes or refunds, to accurately determine their Gross Sales figures.