When are taxes on fees payable to Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
plies. Payment may include cost of goods, shipping and handling | | Taxes | Actual Costs | On demand | Payable if certain taxes are levied or assessed on the fees you pay to us or our affiliates. ( Note 8 ) | | NAME OF FEE | AMOUNT | DUE DATE | REMARKS | |--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Customer Development Fee | 3 times the monthly amount agreed to be paid to FRANCHISEE or its employees or affiliates for providing services to Customers outside of the Franchise Agreement | On demand | Payable only if janitorial or cleaning services are provided to Customers within 1 year after termination, expiration or transfer of the Franchise Agreement | | Dispute Resolution Fees | $50,000 plus attorneys' fees and expenses | Upon invoice | If you do not comply with our dispute resolution requirements in the Franchise Agreement | * All fees are imposed by and are payable to us or our Affiliates. All fees are non-refundable. All of the fees were uniformly imposed.
Source: Item 6 — OTHER FEES\ (FDD pages 14–16)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are responsible for covering certain taxes associated with fees paid to Buildingstars or its affiliates. Specifically, if any capital, gross receipts, sales, or other taxes are levied or assessed by a state or local governmental authority on the fees franchisees pay to Buildingstars or its affiliates, the franchisee must indemnify or reimburse Buildingstars or its affiliates for these costs. This obligation extends to taxes resulting from the operation of the franchised business or the license of any of Buildingstars' or its affiliates' intangible property to the franchisee.
However, the franchisee's responsibility to cover taxes does not include income-type taxes imposed on Buildingstars or its affiliates' income. This means that Buildingstars is responsible for its own income taxes, while the franchisee is responsible for other types of taxes related to the fees they pay and the operation of their franchise.
The taxes are payable to Buildingstars or their affiliates 'on demand'. This means that Buildingstars will request payment from the franchisee when these taxes are due, and the franchisee is expected to promptly remit the required amount.