exception

Why are the monthly contract revenue figures for Buildingstars Technicians in business for less than 2 months excluded from the average monthly contract revenue calculations?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

TECHNICIAN (1,206 Franchisees)

Monthly Contract Revenue for Technicians who have been in business for less than 2 months are not included, since there is no operating history for those franchisees.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 31–34)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the monthly contract revenue for Technicians in business for less than 2 months is excluded from average monthly contract revenue calculations because there is no operating history for those franchisees. This means that Buildingstars believes the initial revenue figures for new franchisees during their first two months of operation are not reliable indicators of their potential future performance.

For a prospective Buildingstars franchisee, this exclusion suggests that the first couple of months in business may be considered a ramp-up period. The FDD provides financial performance data for technicians in business for longer periods, which Buildingstars deems more representative of ongoing operations.

It is important to note that while the FDD excludes the first two months from average revenue calculations, it does provide data on the number and percentage of franchisees in business for less than 2 months. For example, one table shows that 44 franchisees, representing 3.6% of the total, were in this category. Another table shows 1 franchisee representing 0.6% of the total. This information can still be valuable for a prospective franchisee to understand the initial stages of the business, even if the revenue data is not included in the averages.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.