For the 1 800 Packouts audit, what accounting principles were used in the United States of America?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
The consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (US GAAP) and include the accounts of FS PEP Holdco, LLC and its wholly owned subsidiaries: Five Star Connect, Inc.; Gotcha Covered Franchising, LLC; Ringside Development Company; Bio-One IP Group, LLC; Ringside Group, LLC; Mosquito Shield Franchise, LLC; 1-800-Packounts Holdco, LLC; CMY Holdco, LLC; Five Star Bath, Inc; Five Star Franchising, LLC; and its wholly owned subsidiary Five Star Bath, LLC.
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the consolidated financial statements for 1 800 Packouts are presented in conformity with accounting principles generally accepted in the United States of America, also known as US GAAP. This indicates that 1 800 Packouts adheres to a standardized set of accounting rules and guidelines established in the U.S. for financial reporting. These principles ensure transparency and comparability in financial statements.
For a prospective franchisee, this means that 1 800 Packouts' financial records are maintained in accordance with a consistent and widely recognized standard. This can provide a level of confidence when reviewing the franchisor's financial performance and stability. Understanding that the financial statements follow US GAAP allows franchisees and investors to compare 1 800 Packouts' financial data with other companies that also adhere to these principles.
However, it's important to note that while US GAAP provides a standard framework, the preparation of financial statements still requires management to make estimates and assumptions. These estimates can affect the reported amounts and disclosures in the financial statements, and actual results could differ. Therefore, while US GAAP provides a baseline for financial reporting, prospective franchisees should still conduct their own due diligence and seek professional advice when evaluating 1 800 Packouts' financial condition.