What is included in the calculation of 'Gross Sales' for a Buildingstars franchisee?
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 a key figure used to calculate various fees payable to the franchisor. For a Buildingstars franchisee, Gross Sales is defined as the total money or property earned or derived from the operation of the cleaning business. This includes all fees and other charges for every type of service performed, as well as goods and services sold.
The timing of when these sales are calculated is also specified; Gross Sales are calculated at the time the services or products are delivered or rendered. This means that the revenue is recognized when the service is provided, not necessarily when payment is received.
However, the definition also explicitly excludes certain items from the Gross Sales calculation. Specifically, applicable sales, use, or service taxes are not included, nor are any refunds and allowances actually given to customers. This ensures that franchisees are not paying fees on amounts that are passed through to taxing authorities or returned to customers.