Is the Management Fee refundable under any circumstances for a Buildingstars franchise?
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 under any circumstances. The Management Fee is paid monthly and is equal to 10% of Gross Sales from the Business throughout the term of the Franchise Agreement. Buildingstars withholds the Management Fee from the amount of billings Buildingstars collects for the franchisee.
This means that once a Buildingstars franchisee pays the Management Fee, they cannot get it back, regardless of the circumstances. This is a standard practice in franchising, as fees are typically used to cover the franchisor's ongoing costs of supporting the franchisee.
Prospective Buildingstars franchisees should carefully consider this non-refundable aspect of the Management Fee before investing in the franchise. It is important to factor this cost into their financial projections and ensure they can comfortably afford it throughout the term of the agreement.