What was the cost of revenue for Buildingstars in 2023?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
86,511 | | Retained earnings | 2,302,263 | 2,930,029 | 2,016,751 | | | 3,689,274 | 4,317,040 | 3,403,762 | | | $ 14,462,992 | $ 13,329,754 | $ 10,891,934 | | | | | |
BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| REVENUE | $ 83,617,433 | $ 76,205,348 | $ 70,164,196 | ||
| COST OF REVENUE | 60,705,321 | 55,325,794 | 50,810,089 | ||
| GROSS MARGIN | 22,912,112 | 20,879,554 | 19,354,107 | ||
| OPERATING EXPENSES | 13,674,903 | 12,509,619 | 11,453,047 | ||
| General and administrative expenses |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the cost of revenue for the company in 2023 was $55,325,794. This figure represents the direct costs associated with providing janitorial services and other services.
Cost of revenue, also sometimes called cost of goods sold, typically includes expenses like labor, materials, and direct overhead. For a Buildingstars franchisee, understanding the cost of revenue is crucial because it directly impacts the profitability of the business. By subtracting the cost of revenue from the total revenue, one can determine the gross profit, which is a key indicator of financial performance.
Franchisees should pay close attention to how Buildingstars defines and calculates its cost of revenue to accurately assess their own potential expenses and earnings. It's also worth noting that Buildingstars includes sales tax collected and remitted to a governmental authority in revenue and cost of revenue. This accounting practice can inflate both revenue and cost of revenue figures, so franchisees should be aware of this when analyzing the financial statements.