When is the Royalty Fee and Management Fee due to Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
stomers. "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.
Note 2: If you request a new customer account to service or if we offer you a new customer account which you wish to service, you must pay us an Account Sales Fee of either 150% of the Monthly Contract Revenue which is generated from the new customer account if you are an On-Site Manager Program franchisee or 300% of the Monthly Contract Revenue if you are a Corporate Program franchisee.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, both the Royalty Fee and the Management Fee are due on the 15th of each month. Specifically, franchisees must pay these fees by the 15th day of the month following the month in which the sales were made. For example, the Management Fee for February is payable by March 15th. Buildingstars withholds the Management Fee from the amount of billings it collects on the franchisee's behalf.
The Royalty Fee is typically 10% of Gross Sales, but this can vary depending on the franchisee's 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 above and beyond the scope of monthly janitorial services, such as carpet cleaning, floor refinishing, window cleaning, and special projects. Technician Program franchisees are not permitted to do Specialty Work.
Gross Sales is defined as the total money or property earned 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 are 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.