What was the total amount of third-party operating leases for Buildingstars at the end of 2026?
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 third-party operating leases for the year ending December 31, 2026, was $213,732. This figure represents Buildingstars's financial obligations for leases with entities not directly affiliated with the company.
For a prospective franchisee, understanding the nature and extent of these lease obligations is crucial. It provides insight into Buildingstars's operational overhead and financial commitments. These leases could be for office spaces, equipment, or other assets necessary for running the franchise system. The franchisee should consider how these lease obligations might affect Buildingstars's financial stability and its ability to support its franchisees.
It's also important to note that the FDD provides similar data for other years, allowing for a trend analysis. Reviewing these figures over time can reveal whether Buildingstars is increasing or decreasing its reliance on third-party operating leases, which could indicate changes in its business strategy or financial health. A potential franchisee should investigate the specific assets covered by these leases and their importance to the franchise system's operations.