What was the total amount written off by Buildingstars in 2023?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
based on management's evaluation of the anticipated impact on the balance of current economic conditions, changes in the character and size of the balance, past and expected future loss experience and other pertinent factors.
Changes in the allowance for credit losses are as follows:
| As of and for the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Balance at beginning of year |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the total amount written off by Buildingstars in 2023 was $71,467. This figure is part of a table that also includes data for 2024 and 2022, providing a comparative view of these amounts over the three years.
Amounts written off typically represent uncollectible debts or assets that are deemed to have no value and are removed from the company's balance sheet. For a prospective franchisee, this could indicate the level of financial risk associated with receivables or other assets held by Buildingstars. It's important to note that while amounts can be written off, there is also a possibility of recovering some of these amounts, as shown in the table with a recovery of $5,600 in 2023.
The provision for credit losses, which was $22,770 in 2023, is an estimate of potential future losses on accounts receivable. This provision, along with the amounts written off, can give a franchisee an idea of Buildingstars' approach to managing credit risk and the potential for financial losses related to uncollectible accounts. Understanding these figures can help a franchisee assess the financial stability and risk management practices of Buildingstars.
Reviewing these financial details is a standard part of due diligence when considering a franchise investment. Prospective franchisees should consider these figures in the context of the overall financial health of Buildingstars and compare them to industry benchmarks to assess whether the levels of write-offs and credit loss provisions are reasonable.