Are the financial statements for Buildingstars audited by a Certified Public Accountant?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
Attached to this franchise disclosure document as Exhibit G are:
The audited consolidated financial statements and supplementary information of our parent, Buildingstars International, Inc., and subsidiaries for the years ending December 31, 2024, 2023, and 2022. Buildingstars International, Inc. has guaranteed our performance with you. A copy of the Guaranty of Performance is included in Exhibit G.
Attached to this franchise disclosure document as Exhibit H are unaudited financial statements if required by law.
[...]
THESE FINANCIAL STATEMENTS ARE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM
NONE
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the financial statements of Buildingstars International, Inc., the parent company, are audited. Exhibit G of the FDD includes the audited consolidated financial statements and supplementary information for the years ending December 31, 2024, 2023, and 2022. Buildingstars International, Inc. has guaranteed Buildingstars's performance.
However, Exhibit H contains unaudited financial statements, if required by law. The FDD explicitly states that these unaudited financial statements are prepared without an audit and that no Certified Public Accountant has audited these figures or expressed an opinion on them. The document indicates that there are no unaudited financial statements included.
Prospective franchisees should review the audited financial statements of Buildingstars International, Inc. carefully to understand the financial health and stability of the parent company, as this entity guarantees Buildingstars's performance. If a state requires it, unaudited financial statements may be included, but these have not been reviewed by a CPA. It is typical for franchisors to provide audited financial statements to ensure transparency and credibility.