Does the Buildingstars Franchise Disclosure Document include unaudited financial statements?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
EXHIBIT H
UNAUDITED FINANCIAL STATEMENTS
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, Item 21 addresses the inclusion of financial statements. The document includes audited consolidated financial statements and supplementary information for Buildingstars International, Inc., and its subsidiaries for the years ending December 31, 2024, 2023, and 2022, as shown in Exhibit G. Buildingstars International, Inc. guarantees Buildingstars's performance.
Exhibit H of the Buildingstars FDD contains unaudited financial statements only if required by law. However, the document explicitly states "NONE" under the heading for unaudited financial statements, indicating that no such statements are included in the 2025 FDD.
Prospective franchisees should be aware that the absence of unaudited financial statements means they will need to rely on the audited statements of Buildingstars International, Inc. to assess the financial health of the company. It is important to carefully review the audited financial statements and consult with a financial advisor to fully understand the financial condition of Buildingstars and its parent company before making a decision to invest in a franchise.