What does the auditor's report for 1 800 Packouts include?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 902 (401) 462-9500 | WASHINGTON Department of Financial Institutions Securities Division - 3rd Floor West 150 Israel Road, S.W. Tumwater, Washington 98501 PO Box 9033 Olympia, Washington 98507 (360) 902-8760 |
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| SOUTH DAKOTA Department of Labor and Regulation Securities Regulation Office 445 E. Capitol Avenue Pierre, South Dakota 57501-3185 (605) 773-4823 | WISCONSIN Office of the Commissioner of Securities 345 West Washington Avenue, Fourth Floor Madison, Wisconsin 53703 (608) 261-9555 |
EXHIBIT D TO THE FRANCHISE DISCLOSURE DOCUMENT FINANCIAL STATEMENTS
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FS PEP HOLDCO, LLC and SUBSIDIARIES
Consolidated Financial Statements As of December 31, 2024 and 2023 and For the Years Then Ended
Independent Auditors' Report
(1) To the Board of Managers of FS PEP Holdco, LLC
Opinion
We have audited the accompanying consolidated financial statements of FS PEP Holdco, LLC and subsidiaries (collectively, the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, members' equity, and cash flows for the years then ended, and the related notesto consolidated financialstatements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of FS PEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023, and the results of the
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the Independent Auditors' Report for FS PEP Holdco, LLC and subsidiaries, which includes 1 800 Packouts, contains an opinion on the consolidated financial statements. The auditor's opinion states that the financial statements present fairly the financial position of FS PEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023. It also covers the results of their operations and cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
The audit report also mentions the acquisition of CMY Holdco, LLC in March 2024, which was accounted for retrospectively. The auditor states they did not audit the 2023 financial statements of Card my Yard Franchising, LLC, a wholly-owned subsidiary of CMY Holdco, LLC, which reflect total assets of $10,040,671 and total revenues of $3,521,565. These statements were audited by other auditors, and their report has been furnished to the auditor for FS PEP Holdco, LLC.
For a prospective 1 800 Packouts franchisee, this information provides insight into the financial oversight and reporting practices of the parent company. It's important to note that the auditor's opinion is based on accounting principles generally accepted in the United States of America, which provides a level of standardization and comparability. The mention of the acquisition and the reliance on other auditors for a subsidiary's financial statements highlights the complexity of the overall corporate structure. A potential franchisee may want to further investigate the performance and financial health of Card my Yard Franchising, LLC, as it is a subsidiary of the parent company.