What is included in the definition 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 defined as the total money or property earned by the franchisee or derived from the operation of the business. This includes all fees and other charges for every type of service performed, as well as goods and services sold. Gross Revenue is calculated when the services or products are delivered or rendered.
However, the definition of Gross Revenue does not include applicable sales, use, or service taxes. Additionally, any refunds and allowances actually given to customers are also excluded from the calculation of Gross Revenue.
Understanding what constitutes Gross Revenue is critical for a Buildingstars franchisee because several fees payable to Buildingstars are calculated as a percentage of Gross Revenue. These include the Royalty Fee, Management Fee, Administration Fee, and Insurance Program Fee. 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.