Under what condition is the Audit Fee charged for a Buildingstars franchise?

According to Buildingstars's 2025 Franchise Disclosure Document, an Audit Fee is charged to a franchisee only if an audit reveals an understatement of at least 2% of Gross Sales for any given month. The fee is the cost of the audit itself and is due 30 days after billing.

This means that Buildingstars franchisees are not routinely subject to audit fees. The fee is only triggered if Buildingstars suspects and confirms a significant underreporting of revenue. This provides an incentive for franchisees to accurately report their gross sales, as consistent underreporting could lead to an audit and the associated cost.

Franchisors often reserve the right to audit franchisee records, particularly when there is a discrepancy between reported sales and expected performance. The threshold of 2% provides a specific benchmark. This protects Buildingstars from absorbing losses due to inaccurate royalty payments.

Prospective franchisees should maintain meticulous records of their gross sales and ensure accurate reporting to avoid triggering an audit and incurring this fee. It is also important to understand what documentation Buildingstars requires to verify gross sales figures.