What is included in the calculation of 'Gross Sales' 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" is defined as the total money or property earned by the franchisee. This includes all fees and other charges for every type of service performed, as well as the sale of goods and services connected to the operation of the Buildingstars business. Gross Sales are calculated when the services or products are delivered or rendered.
However, the calculation of Gross Sales for a Buildingstars franchise does not include applicable sales, use, or service taxes. Additionally, any refunds and allowances actually given to customers are also excluded from the Gross Sales calculation.
Understanding what constitutes Gross Sales is crucial for a Buildingstars franchisee because several fees, such as the Royalty Fee, Administration Fee, and Insurance Program Fee, are calculated as a percentage of Gross Sales. Accurate reporting of Gross Sales is essential to avoid underpayment and potential audits by Buildingstars, which could result in additional costs and penalties.