When is the monthly Royalty Fee due to Buildingstars?
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 Royalty Fee equal to ten percent (10%) of Gross Sales from the Business throughout the term of this Agreement. For example, the Royalty Fee for February is payable by March 15th. BUILDINGSTARS will withhold the Royalty Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Royalty Fee is refundable. Notwithstanding the foregoing, FRANCHISEE shall pay a Royalty Fee of thirty percent (30%) instead of ten percent (10%) on the Gross Sales attributable to Specialty Work.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the Royalty Fee is due monthly, specifically by the fifteenth (15th) day of the month following the month in which the sales were invoiced. For instance, the Royalty Fee for February's sales is payable by March 15th.
Buildingstars withholds the Royalty Fee from the billings it collects on behalf of the franchisee. The standard Royalty Fee is 10% of Gross Sales, but this increases to 30% for Gross Sales attributable to Specialty Work under the On-Site Manager Program and 20% under the Technician Program.
It is important to note that no portion of the Royalty Fee is refundable. This means that even if a customer doesn't pay or if there are disputes, the franchisee is still responsible for paying the Royalty Fee on the invoiced sales. Franchisees should factor this into their financial planning and ensure they have sufficient cash flow to cover these fees.