Is the Management Fee refundable for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Management Fee. 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 twenty percent (20%) of Gross Revenue 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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Management Fee is not refundable. Buildingstars franchisees must pay a monthly Management Fee equal to 20% of Gross Revenue from the Business. This fee is due by the 15th day of the month following the month in which the sales were invoiced. Buildingstars withholds the Management Fee from the billings it collects for the franchisee.
This non-refundable policy means that once the Management Fee is paid to Buildingstars, it cannot be recovered by the franchisee under any circumstances. This is a standard practice in franchising, as these fees are used to cover ongoing support and services provided by the franchisor.
Prospective Buildingstars franchisees should carefully consider this non-refundable aspect of the Management Fee, factoring it into their financial projections and business planning. Understanding the terms and conditions associated with fees is crucial for making informed decisions about investing in a Buildingstars franchise.