What was the total accumulated depreciation for Buildingstars property and equipment in 2022?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ent Events**
The Company has performed a review of events subsequent to the balance sheet date through March 11, 2025, the date the consolidated financial statements were available to be issued.
NOTE 2 — PROPERTY AND EQUIPMENT
Property and equipment are stated at cost less accumulated depreciation and consists of the following:
| | 2024 | 2023 | 2022 | |-------------------------------
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 total accumulated depreciation for property and equipment in 2022 was $496,400. This figure reflects the cumulative amount of depreciation recognized against the company's leasehold improvements, furniture and fixtures, and equipment up to the end of 2022. Depreciation is an accounting method used to allocate the cost of tangible assets over their useful lives, reflecting the gradual decrease in their value due to wear and tear, obsolescence, or other factors.
For a prospective Buildingstars franchisee, understanding accumulated depreciation is crucial for assessing the company's financial health and asset management practices. A higher accumulated depreciation relative to the original cost of assets may indicate older equipment or a more conservative accounting approach. Conversely, lower accumulated depreciation could suggest newer assets or a more aggressive depreciation schedule.
It is important to note that accumulated depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash. Instead, it represents the allocation of past cash outlays for the purchase of assets over their useful lives. Reviewing these figures in the FDD helps potential franchisees gain insights into Buildingstars's capital investments and how they are accounted for in the company's financial statements.