What is the initial franchise fee for Buildingstars if the monthly contract revenue is $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 the On-Site Manager Program with a monthly contract revenue of $2,000 depends on whether you pay cash or finance the fee. If paying cash, the initial franchise fee is calculated by adding a Base Fee of $3,995 to an MCR Fee, which is 150% of the monthly contract revenue. For a $2,000 monthly contract, the MCR Fee is $3,000, resulting in a total initial franchise fee of $6,995. If the fee is financed, the total initial franchise fee, including finance fees, is $7,995.
For franchisees choosing to finance the initial franchise fee, Buildingstars requires a minimum down payment of $3,995. The remaining balance of $4,000 is financed through a promissory note, payable over 20 months with monthly payments of $200. This financing option allows franchisees to start their Buildingstars business with a lower upfront investment, spreading the cost over a longer period.
The initial franchise fee is fully earned by Buildingstars upon payment and is non-refundable under any circumstances. This is a standard practice in franchising, as the fee compensates the franchisor for the initial services and support provided to the franchisee, such as training, site selection assistance, and access to the Buildingstars brand and operating system. Prospective franchisees should carefully consider their financial situation and funding options before committing to a Buildingstars franchise, as the initial fee represents a significant investment.