Is the Buildingstars Royalty Fee refundable?

According to Buildingstars's 2025 Franchise Disclosure Document, the Royalty Fee is not refundable. Buildingstars franchisees must pay a monthly Royalty Fee, typically 10% of Gross Sales, due by the 15th of the month following the sales period. For example, the Royalty Fee for February's sales is due by March 15th. Buildingstars withholds this fee from the billings it collects on behalf of the franchisee. However, the Royalty Fee can increase to either 20% or 30% of Gross Sales for Specialty Work, depending on the franchise program.

This non-refundable policy means that once a Buildingstars franchisee pays the Royalty Fee, they cannot get it back under any circumstances. This is a standard practice in franchising, as royalty fees are the primary way franchisors generate revenue and support their franchisees.

A prospective Buildingstars franchisee should carefully consider the implications of this non-refundable Royalty Fee. They need to ensure they understand how the fee is calculated, when it is due, and what services and support they will receive in exchange for paying it. Understanding these details is crucial for managing their finances and ensuring the profitability of their Buildingstars franchise.