When is the Buildingstars Management Fee due each month?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay to BUILDINGSTARS, monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), a Management Fee equal to ten percent (10%) of Gross Sales from the Business throughout the term of this Agreement.
For example, the Management Fee for February is payable by March 15th.
BUILDINGSTARS will withhold the Management Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec.
VI.D. below.
No part of the Management Fee is refundable.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Management Fee is due monthly, specifically by the fifteenth day of the month following the month in which the sales were invoiced. For instance, the Management Fee for February's sales is payable by March 15th. This fee is calculated as ten percent of the Gross Sales from the Buildingstars business throughout the term of the Franchise Agreement.
Buildingstars withholds the Management Fee from the billings it collects on behalf of the franchisee. This means that franchisees do not need to make a separate payment, as the fee is automatically deducted from their earnings. The FDD clearly states that no part of the Management Fee is refundable.
This arrangement provides convenience for the franchisee, as Buildingstars handles the collection and deduction process. However, franchisees should be aware of the due date to ensure accurate financial planning and to avoid any potential discrepancies. Understanding the billing and payment procedures outlined in Section VI.D, as referenced in the FDD, is crucial for managing finances effectively as a Buildingstars franchisee.