What is the range of franchise service fees deducted by the Company-owned Master Franchise from Buildingstars franchisee payments?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company-owned Master Franchise remits payments to the franchisee based upon the prior month's billings after deducting the franchise service fees of 10% to 30%, any financing payments due, and other incidental expenses.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the Company-owned Master Franchise deducts franchise service fees ranging from 10% to 30% from franchisee payments. This fee is calculated based on the franchisee's customer-level revenue.
In practice, this means that when a Buildingstars franchisee receives payment for their services, the Company-owned Master Franchise will first deduct this service fee before remitting the remaining balance to the franchisee. This deduction directly impacts the franchisee's revenue and profitability, as it reduces the amount of money they ultimately receive from their customer billings.
In addition to the franchise service fees, the Company-owned Master Franchise may also deduct any financing payments due and other incidental expenses from the franchisee's payments. It is important for prospective franchisees to understand the full scope of these deductions and how they will affect their overall earnings. Franchisees should inquire about what constitutes "other incidental expenses" to fully understand potential deductions from their payments.