What is the initial franchise fee for a Buildingstars franchise with a monthly contract revenue of $2,000?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial Franchise Fee:
Initial Franchise Fee - Cash
| Monthly Contract Revenue | Rate | MCR Fee | Base Fee | Initial Franchise Fee (lump sum) |
|---|---|---|---|---|
| $2,000 | 150% | $3,000 | $3,995 | $6,995 |
Initial Franchise Fee - Financed
If financed, you must make a minimum down payment of $3,995 upon the execution of the Franchise Agreement and execute a Promissory Note for the amount financed.
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial franchise fee for an On-Site Manager Program franchise with a $2,000 monthly contract revenue is $6,995 if paid in a lump sum. This fee is comprised of a $3,995 base fee and a $3,000 MCR (Monthly Contract Revenue) fee. The MCR fee is calculated as 150% of the $2,000 monthly contract revenue.
Alternatively, Buildingstars offers financing options for the initial franchise fee. If financed, the total initial franchise fee increases to $7,995, requiring a minimum down payment of $3,995. The remaining $4,000 is financed and paid over 20 months at $200 per month.
It is important to note that the initial franchise fee is fully earned by Buildingstars upon payment and is non-refundable under any circumstances. Prospective franchisees should carefully consider their financing options and ensure they understand the terms and conditions of the franchise agreement before making any payments.