What is the monthly Administration Fee that a Buildingstars franchisee must pay?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal five percent (5%) of the Gross Sales from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D. below. No part of the Administration Fee is refundable.
- E. Insurance Program Fee. If FRANCHISEE elects to participate in the insurance program developed for BUILDINGSTARS and its franchisees, FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Insurance Program Fee. The Insurance Program Fee is currently three and one-half percent (3 ½%) of Gross Sales from the Business and is subject to change. BUILDINGSTARS will withhold the Insurance Program Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Insurance Program Fee is refundable. BUILDINGSTARS makes this program available to qualified franchisees and will continue to do so in its sole discretion, but assumes no liability in connection therewith.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees are required to pay a monthly Administration Fee. This fee is calculated as five percent (5%) of the Gross Sales generated from the business. The Administration Fee is due by the fifteenth (15th) day of the month following the month in which the sales were invoiced.
Buildingstars withholds the Administration Fee directly from the billings it collects on behalf of the franchisee. This means that franchisees do not need to make a separate payment for this fee, as it is automatically deducted from their earnings. The FDD clearly states that no portion of the Administration Fee is refundable.
In addition to the Administration Fee, Buildingstars franchisees may also elect to participate in an insurance program, which requires payment of an Insurance Program Fee. This fee is separate from the Administration Fee and is currently set at three and one-half percent (3 ½%) of Gross Sales, although this percentage is subject to change. Like the Administration Fee, the Insurance Program Fee is also non-refundable and is withheld from the franchisee's billings collected by Buildingstars.