What was the amount written off for Buildingstars accounts receivable in 2023?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
based on management's evaluation of the anticipated impact on the balance of current economic conditions, changes in the character and size of the balance, past and expected future loss experience and other pertinent factors.
Changes in the allowance for credit losses are as follows:
| As of and for the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Balance at beginning of year |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the amount written off for accounts receivable in 2023 was $71,467. This figure represents the value of accounts receivable that Buildingstars determined to be uncollectible and removed from its financial statements.
In addition to the write-off, Buildingstars also recovered $5,600 from previously written-off accounts in 2023. Furthermore, the company recorded a provision for credit losses of $22,770 during the same year. The provision for credit losses is an estimate of potential future uncollectible accounts, which impacts the company's financial reporting.
Understanding these figures is important for prospective franchisees as it provides insight into Buildingstars' financial health and its ability to manage accounts receivable. Franchisees should inquire about the company's credit policies and collection procedures to better understand the risk of potential write-offs and their impact on the overall financial performance of the franchise system.