What was the total cost of furniture and fixtures for Buildingstars in 2023 before depreciation?
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 cost of furniture and fixtures in 2023, before accounting for depreciation, was $497,002. This figure represents the original cost of these assets when they were acquired by Buildingstars. Depreciation is an accounting method used to allocate the cost of these assets over their useful life.
For a prospective franchisee, understanding the value of Buildingstars's assets can provide insight into the company's financial health and investment in its infrastructure. The furniture and fixtures are essential for the company's operations, and this figure shows the scale of that investment. It's important to note that this number reflects the cost at a specific point in time and does not indicate the current market value or condition of these assets.
It is also important to consider the accumulated depreciation, which was $516,187 in 2023. This means that the book value of these assets (original cost less accumulated depreciation) is significantly lower than the original cost. Monitoring these figures over time can help assess how Buildingstars manages its assets and their long-term value. Franchisees may want to inquire about the company's policies on asset replacement and upgrades to ensure continued operational efficiency.