What event necessitated the retrospective combination in the consolidated financial statements of FS PEP Holdco, LLC and subsidiaries, which include 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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 their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the Un
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the consolidated financial statements of FS PEP Holdco, LLC and its subsidiaries, including 1 800 Packouts, required retrospective combination due to the acquisition of CMY Holdco, LLC in March 2024. This acquisition involved an entity under common control.
The independent auditors' report clarifies that the historical financial activities of CMY Holdco, LLC, and its wholly-owned subsidiary, Card My Yard Franchising, LLC, prior to the acquisition, were combined retrospectively into the consolidated financial statements. The FDD notes that the auditor did not audit the 2023 financial statements of Card My Yard Franchising, LLC, which reflected total assets of $10,040,671 and total revenues of $3,521,565. Instead, the auditor relied on the report from other auditors for these figures.
This retrospective combination ensures that the financial statements provide a comprehensive view of the company's financial position and performance, including the newly acquired entity, CMY Holdco, LLC, and its subsidiary, Card My Yard Franchising, LLC. For a prospective 1 800 Packouts franchisee, this means that the financial statements reflect a complete picture of the parent company's operations, including all acquisitions and their historical performance, which can be useful in assessing the overall financial health and stability of the organization.