What was the total retained earnings for Buildingstars at the end of the 2022 fiscal year?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
n credit, net | - | 327,366 | - | | | | NET INCOME | $ 8,759,493 | $ 8,227,718 | $ 7,513,928 | | |
BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY Years Ended December 31, 2024, 2023 and 2022
| Common Stock | Paid-In Capital | Retained Earnings | Total | |
|---|---|---|---|---|
| Balance at January 1, 2022 | $ 500 | $ 1,386,511 | $ 4,291,773 | $ 5,678,784 |
| Net Income | - | - | 7,513,928 | 7,513,928 |
| S Corporation Distributions | - | - | (9,788,950) | (9,788,950) |
| Balance at December 31, 2022 | 500 | 1,386,511 | 2,016,751 | 3,403,762 |
| Net Income | - | - | 8,227,718 | 8,227,718 |
| S Corporation Distributions | - | - | (7,314,440) | (7,314,440) |
| Balance at D |
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 company's retained earnings at the end of the 2022 fiscal year was $2,016,751. Retained earnings represent the accumulated net income of the company that has not been distributed to shareholders as dividends. It is an important indicator of the company's financial health and its ability to reinvest in the business or distribute profits in the future.
For a prospective Buildingstars franchisee, retained earnings can provide insight into the financial stability and profitability of the franchisor. A higher retained earnings balance generally indicates that the company has been profitable and has managed its finances effectively. This can be reassuring for franchisees who are considering investing in the brand.
However, it's important to consider retained earnings in conjunction with other financial metrics and information about Buildingstars. Factors such as the company's debt levels, cash flow, and overall financial performance should also be taken into account. Additionally, prospective franchisees should review the notes to the financial statements for any significant events or transactions that could impact retained earnings.