What is included in the calculation of 'Gross Revenue' 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 a critical figure used to calculate various fees payable to Buildingstars. Gross Revenue for a Buildingstars franchisee includes the total money or property earned from the operation of the cleaning business. This encompasses all fees and other charges for every type of service performed, as well as goods and services sold.
The timing of when revenue is calculated is also specified; it is calculated at the time the services or products are delivered or rendered. However, the definition of Gross Revenue specifically excludes applicable sales, use, or service taxes that are collected, as well as any refunds and allowances actually given to customers.
Understanding what constitutes Gross Revenue is important for a prospective Buildingstars franchisee because several ongoing fees, such as the Royalty Fee, Management Fee, Administration Fee, and Insurance Program Fee, are calculated as a percentage of this amount. Therefore, accurately tracking and reporting Gross Revenue is essential for compliance with the franchise agreement and for managing the franchisee's financial obligations to Buildingstars.