Does the 1 800 Packouts FDD include a statement of cash flows for its Parent company?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| loor 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 their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the Un
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2025 FDD)
According to the 2025 FDD, the financial statements of 1 800 Packouts' parent company, FS PEP Holdco, LLC, are included. Specifically, the consolidated financial statements for FS PEP Holdco, LLC and its subsidiaries include consolidated statements of operations, members' equity, and cash flows for the years ended December 31, 2024, and 2023.
This means that prospective 1 800 Packouts franchisees can review the cash flow statements of the parent company to understand how it has generated and used cash over the past two years. This information can be helpful in assessing the financial stability and performance of the parent company, which indirectly supports the 1 800 Packouts franchise system.
However, it is important to note that the financial statements are consolidated, meaning they include the financial results of all of FS PEP Holdco, LLC's subsidiaries, not just 1 800 Packouts. Therefore, the cash flow statement reflects the overall financial activities of the entire group of companies under FS PEP Holdco, LLC's ownership. Additionally, the audit report mentions that the 2023 financial statements of Card my Yard Franchising, LLC were audited by other auditors, and FS PEP Holdco, LLC's opinion is partly based on their report.