For Buildingstars, if the monthly contract revenue is $2,000, what is the MCR Fee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
Note 2: On-Site Manager Program.
The Initial Franchise Fee consists of two separate fees: a fixed fee ("Base Fee") and a variable fee ("MCR Fee"). The Base Fee is $3,995. The MCR Fee is 150% of the Monthly Contract Revenue if you pay cash and 200% of the Monthly Contract Revenue if the Initial Franchise Fee is financed. The MCR Fee is $3,000 ($2,000 Monthly Contract Revenue x 150%).
[Item 5: INITIAL FEES]
| Monthly Contract Revenue | Rate | MCR Fee | Base Fee | Initial Franchise Fee (lump sum) |
|---|---|---|---|---|
| $2,000 | 150% | $3,000 | $3,995 | $6,995 |
[Item 5: INITIAL FEES]
| Monthly Contract | Initial Franchise Fee | Minimum Down | Number of | Monthly Payment | |
|---|---|---|---|---|---|
| Revenue | (Including Finance Fees) | Payment | Amount Financed | Months | Amount |
| $2,000 | $7,995 | ($3,995) | $4,000 | 20 | $200 |
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the MCR Fee for an On-Site Manager Program with $2,000 in Monthly Contract Revenue is dependent on whether the Initial Franchise Fee is paid in cash or financed. If the fee is paid in cash, the MCR Fee is 150% of the Monthly Contract Revenue. If the Initial Franchise Fee is financed, the MCR Fee is 200% of the Monthly Contract Revenue.
For example, if the Initial Franchise Fee is paid in cash, the MCR Fee is calculated as $2,000 (Monthly Contract Revenue) x 150%, which equals $3,000. The document also provides a table outlining the Initial Franchise Fee for a $2,000 Monthly Contract Revenue, showing an MCR Fee of $3,000 when the rate is 150%.
If the Initial Franchise Fee is financed, the MCR Fee would be higher, but the exact amount is not specified in the provided excerpt. The total Initial Franchise Fee, including finance fees, is $7,995, with a minimum down payment of $3,995 and the remaining $4,000 financed over 20 months at $200 per month. Therefore, a prospective franchisee should clarify with Buildingstars the exact MCR Fee calculation when financing the Initial Franchise Fee to fully understand the initial investment.