When is the Buildingstars Royalty Fee due each month?
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's 2025 Franchise Disclosure Document, the Royalty Fee is due monthly, specifically by the 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. However, a franchisee will pay a Royalty Fee of 30% on Gross Sales attributable to Specialty Work, instead of the standard 10%.
It is important to note that no part of the Royalty Fee is refundable. This means that once the fee is paid, it cannot be recovered, even if the franchisee experiences financial difficulties or disputes the amount owed. Franchisees should carefully track their gross sales and ensure timely payment of the Royalty Fee to avoid potential penalties or breach of the franchise agreement.