When is the Royalty Fee deducted for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty Fee | 10% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation ( Note 1 ) |
Note 1: "Gross Sales" means the total money or property you earn or derive from the operation of the Business, including all fees and other charges for every type of service performed and goods and services sold. Gross Sales will be calculated at the time the services or products from which they were derived are delivered or rendered. The term does not include applicable sales, use or service taxes and any refunds and allowances actually given to customers. "Gross Sales" may also be referred to as "Gross Revenues."
You will pay us, by the 15th day of the month following the month in which the sales were made, a Royalty Fee and a Management Fee equal to the amount described in the chart above throughout the term of the Franchise Agreement. For example, the Management Fee for February is payable by March 15th . We will withhold the Management Fee from the amount of billings which we collect on your behalf.
For the On-Site Manager Program, you will pay a Royalty Fee of 20% instead of 10% on those Gross Sales attributable to Specialty Work. For the Corporate Program, you will pay a Royalty Fee of 30% instead of 10% on those Gross Sales attributable to Specialty Work. "Specialty Work" means project work that is above and beyond the scope of the monthly janitorial services, such as carpet cleaning, floor refinishing, window cleaning, and special projects. Franchisees in the Technician Program are not permitted to do Specialty Work.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Royalty Fee is typically deducted on the 15th of each month. Specifically, franchisees pay Buildingstars the Royalty Fee by the 15th day of the month following the month in which the sales were made. For example, the royalty fee for February's sales is payable by March 15th. The standard Royalty Fee is 10% of Gross Sales. Gross Sales includes all money earned from the operation of the business, including fees and charges for services and goods, but excludes applicable sales, use, or service taxes and refunds given to customers.
However, the Royalty Fee structure varies depending on the Buildingstars program. For On-Site Manager Program franchisees, the royalty fee is 20% on Gross Sales attributable to Specialty Work. For Corporate Program franchisees, the royalty fee is 30% on Gross Sales attributable to Specialty Work. Specialty Work includes project work beyond monthly janitorial services, such as carpet cleaning, floor refinishing, window cleaning, and special projects. Technician Program franchisees are not permitted to do Specialty Work.
Buildingstars withholds the Management Fee and Administration Fee from the amount of billings collected on the franchisee's behalf. The Insurance Program Fee is also deducted from the total billings collected on the franchisee's behalf if the franchisee participates in the insurance program. It is important for prospective franchisees to understand these different royalty fee structures and how they apply to their chosen program, as well as how Buildingstars collects these fees.