Is the Buildingstars Management Fee refundable?
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' 2025 Franchise Disclosure Document, the Management Fee is not refundable. The franchisee is required to pay Buildingstars a monthly Management Fee, which is equal to 10% of Gross Sales from the business throughout the term of the agreement. This fee is due by the fifteenth of the month following the month in which the sales were invoiced. For example, the Management Fee for February is payable by March 15th.
Buildingstars withholds the Management Fee from the billings it collects for the franchisee. This means that Buildingstars deducts the Management Fee directly from the payments received from customers on behalf of the franchisee.
The fact that the Management Fee is non-refundable means that once it is paid to Buildingstars, it cannot be recovered by the franchisee under any circumstances. This is a standard practice in franchising, as fees are typically used to cover the franchisor's ongoing support and services.