What was the rent expense Buildingstars paid to Facility Brands Facility, Inc. (FBF) in 2023?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
067 at December 31, 2024, 2023 and 2022, respectively.
Other amounts due from related parties with common ownership was $87,679, $86,978, and $86,128 for the years ended December 31, 2024, 2023, and 2022, respectively. Other amounts due to related parties with common ownership were $6,909, $12,090, and $5,182 at December 31, 2024, 2023 and 2022, respectively.
Facility Brands Facility, Inc. (FBF) owns office buildings and leases these properties to the Company. Rent expense
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 rent expense paid to Facility Brands Facility, Inc. (FBF) in 2023 was $257,551. FBF owns office buildings and leases these properties to Buildingstars. The FDD also notes that in 2024, FBF sold the Chicago property, which resulted in the termination of the operating lease as of September 2024.
This related-party transaction is important for prospective franchisees to understand because it represents a significant expense for Buildingstars. The fact that the lease for the Chicago property was terminated in 2024 could indicate a change in Buildingstars's real estate strategy or its relationship with FBF. Franchisees should inquire about the terms of these leases and how they might affect the financial stability of Buildingstars.
Additionally, the FDD mentions mortgage notes totaling approximately $1,700,000 secured by deeds of trust and security interests in substantially all of Buildingstars's assets. This debt could impact Buildingstars's ability to invest in franchisee support or growth initiatives. It is advisable for potential franchisees to assess the overall financial health of Buildingstars, including its obligations to related parties and its debt levels, to make an informed decision about investing in the franchise.