According to Buildingstars's 2025 Franchise Disclosure Document, the company's total retained earnings as of December 31, 2023, was $2,930,029. This figure represents the accumulated profits of Buildingstars that have been retained in the business rather than distributed as dividends to its stockholders. Retained earnings are a key component of a company's equity and reflect its financial health and ability to reinvest in future growth.

The consolidated statements of changes in stockholder's equity detail how Buildingstars's retained earnings have evolved over the years. The balance at January 1, 2022, was $4,291,773. Throughout 2022, Buildingstars generated a net income of $7,513,928 but also distributed $9,788,950 as S Corporation distributions, resulting in a balance of $2,016,751 at the end of 2022. In 2023, net income added $8,227,718, while distributions amounted to $7,314,440, bringing the retained earnings to $2,930,029 by December 31, 2023.

For a prospective Buildingstars franchisee, understanding the retained earnings is crucial as it provides insight into the financial stability and profitability of the franchisor. A healthy retained earnings balance suggests that Buildingstars is capable of supporting its franchisees and investing in the brand's future. However, it is also important to consider the distributions made to stockholders, as these can impact the amount of capital available for reinvestment in the business. Reviewing these figures in the context of overall financial performance can help a potential franchisee assess the long-term viability of a Buildingstars franchise.