When is the Management Fee deducted for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty Fee | 10% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation ( Note 1 ) |
| Management Fee: Technician Program On-Site Manager Program Corporate Program | 20% of Gross Sales 10% of Gross Sales 0% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation (Note 1) |
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Management Fee is deducted on the 15th of each month. The specific amount varies depending on the franchise program. For the Technician Program, the Management Fee is 20% of Gross Sales. For the On-Site Manager Program, it is 10% of Gross Sales, while the Corporate Program has a 0% Management Fee. Gross Sales are calculated when the services or products are delivered or rendered, excluding applicable taxes, refunds, and allowances.
Buildingstars withholds the Management Fee from the billings collected on behalf of the franchisee. This means that instead of the franchisee paying the fee directly, Buildingstars deducts it from the revenue it collects for the franchisee's services. This process helps ensure that the Management Fee is paid consistently and on time.
For a prospective Buildingstars franchisee, understanding the Management Fee structure is crucial for financial planning. The deduction of the Management Fee on the 15th of each month impacts cash flow, and the percentage varies based on the program chosen. Franchisees should carefully consider which program aligns best with their business goals and financial capabilities, keeping in mind the different Management Fee percentages associated with each program.