What was the depreciation and amortization expense 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' 2025 Franchise Disclosure Document, the total depreciation and amortization expense for Buildingstars in 2023 was $12,979,202. This figure reflects the expense recognized for the wear and tear of assets and the amortization of intangible assets over that year.
Depreciation and amortization are non-cash expenses that reflect the reduction in value of Buildingstars' assets over time. Depreciation typically applies to tangible assets like equipment and buildings, while amortization applies to intangible assets like goodwill or franchise rights. These expenses are important for understanding the true cost of running the Buildingstars business, as they represent the allocation of asset costs over their useful lives.
For a prospective Buildingstars franchisee, understanding these expenses is crucial for assessing the overall financial health and profitability of the franchisor. While franchisees do not directly pay for the franchisor's depreciation and amortization, these expenses impact the franchisor's net income, which can affect the franchisor's ability to support its franchisees and invest in the brand. A high depreciation and amortization expense could indicate significant investments in assets, which may or may not translate to benefits for the franchisees.