Are taxes included in the 'Monthly Contract Revenues' calculation for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Taxes. FRANCHISEE is and will continue to be responsible for complying with all local, state and federal tax requirements including but not limited to income tax, sales tax, use tax or any other tax required along with the proper reporting requirements.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are responsible for all tax requirements. Specifically, the FDD states that Buildingstars franchisees are responsible for complying with all local, state, and federal tax requirements including, but not limited to, income tax, sales tax, use tax, or any other tax required along with the proper reporting requirements.
However, the FDD does not explicitly state whether taxes are included or excluded from the 'Monthly Contract Revenues' calculation. The document outlines various fees, including the Initial Franchise Fee, Royalty Fee, Non-Performance Fee, and Account Sales Fee, but it does not specify how taxes are treated in relation to these fees or the Monthly Contract Revenues.
Therefore, it is important for a prospective Buildingstars franchisee to clarify with the franchisor whether the Monthly Contract Revenues are calculated before or after taxes. This clarification will help the franchisee understand the true revenue potential and accurately forecast their financial obligations and profitability.