What was the total long-term lease liability for Buildingstars at the end of 2025?
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' 2025 Franchise Disclosure Document, the company's total long-term lease liability at the end of 2025 was $1,009,346. This figure is derived from the sum of long-term liabilities related to finance leases, third-party operating leases, and related party operating leases. The long-term finance lease liability was $128,083, the long-term third party operating lease liability was $526,769, and the long-term related party operating lease liability was $482,577.
It is important to note that these lease liabilities represent Buildingstars' obligations for the use of property and equipment under lease agreements. These leases can be with third parties or related parties, such as Facility Brands Facility, Inc. (FBF), which owns office buildings and leases them to Buildingstars. The amounts reflect the present value of future lease payments, discounted to reflect the time value of money.
For a prospective franchisee, understanding Buildingstars' lease obligations can provide insight into the company's financial commitments and its approach to managing its assets. While franchisees are not directly responsible for these leases, the overall financial health of the franchisor can impact the support and services they receive. Reviewing these figures in the context of Buildingstars' overall financial statements can help potential franchisees assess the financial stability of the franchise system.