Is the Royalty Fee refundable under any circumstances for a Buildingstars franchise?

According to Buildingstars's 2025 Franchise Disclosure Document, the Royalty Fee is not refundable under any circumstances. Buildingstars franchisees are required to pay a monthly Royalty Fee, which is typically 10% of Gross Sales. However, this can increase to 20% or 30% for sales attributable to Specialty Work, depending on the franchise agreement. This fee is due by the 15th of the month following the month in which the sales were invoiced (e.g., the Royalty Fee for February is payable by March 15th). Buildingstars withholds the Royalty Fee from the billings it collects on behalf of the franchisee.

This non-refundable policy means that once a Buildingstars franchisee pays the Royalty Fee, it will not be returned, regardless of any circumstances that may arise. This is a standard practice in many franchise systems, as the Royalty Fee compensates the franchisor for the ongoing use of its brand, system, and support services.

Prospective Buildingstars franchisees should carefully consider this non-refundable aspect of the Royalty Fee and factor it into their financial projections. Understanding the terms and conditions associated with the Royalty Fee is crucial for making an informed decision about investing in a Buildingstars franchise.