What was the total amount of finance leases for Buildingstars at the end of 2028?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
lease liabilities | 9,003 | | 24,369 | | 50,008 | | | $ 1,121,628 | $ | 1,078,406 | $ | 1,040,241 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2024, 2023 and 2022
NOTE 4 — LEASES (Continued)
Minimum future lease payments under non-cancellable operating and finance leases described above as of December 31 are as follows:
| Year ending December 31, | Finance Leases | Third Party Operating Leases | Related Party Operating Leases | Total Operating Leases |
|---|---|---|---|---|
| 2025 | $ 232,039 | $ 222,055 | $ 197,551 | $ 419,606 |
| 2026 | 101,195 | 213,732 | 197,551 | 411,283 |
| 2027 | 27,417 | 156,947 | 197,551 | 354,498 |
| 2028 | 6,588 | 71,935 | 115,238 | 186,633 |
| 2029 | 4,392 | 42,741 | - | 42,741 |
| 371,631 | 706,870 | 707,891 | 1,414,761 |
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 amount of finance leases for the year ending December 31, 2028, was $6,588. This figure represents the financial obligations Buildingstars had under finance lease agreements at that time.
Finance leases, unlike operating leases, transfer ownership of the asset to the lessee (Buildingstars) by the end of the lease term. This means Buildingstars essentially finances the asset over the lease period, and the $6,588 reflects the remaining liability on those assets as of the end of 2028.
For a prospective franchisee, understanding the nature and extent of Buildingstars's lease obligations can provide insights into the company's financial health and its approach to asset acquisition. It's important to note that these figures represent Buildingstars's obligations, not those of individual franchisees.