What was the gross margin for Buildingstars in 2022?
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 gross margin for the year ending December 31, 2022, was $19,354,107. This figure represents the revenue Buildingstars earned after deducting the cost of that revenue. Gross margin is a key indicator of financial performance, showing the profit Buildingstars makes from its core business activities before considering operating expenses, general and administrative costs, depreciation, and other factors.
For a prospective franchisee, understanding the gross margin is crucial because it provides insight into the efficiency of Buildingstars's operations and its ability to generate profit from sales. A higher gross margin generally indicates that Buildingstars is effectively managing its production costs and pricing its services competitively. This can translate to a more sustainable and profitable business model for franchisees as well.
However, it's important to note that gross margin doesn't tell the whole story. Franchisees should also consider operating expenses and other factors to get a complete picture of Buildingstars's financial health. In 2022, Buildingstars's revenue was $70,164,196 and the cost of revenue was $50,810,089. Reviewing these figures in conjunction with the gross margin provides a more comprehensive understanding of the company's financial performance and potential profitability for franchisees.