Are the notes to the 7 Brew financial statements considered unaudited, and if not, what are they?

According to 7 Brew's 2025 Franchise Disclosure Document, the financial statements for the years 2022, 2023, and 2024 have been audited. The FDD includes an Independent Auditor's Report and the related notes to these financial statements. The balance sheet as of March 23, 2025, and the income statement for the fiscal period beginning December 30, 2024, and ending March 23, 2025, are specifically noted as unaudited.

The presence of audited financial statements provides a higher level of assurance regarding the accuracy and reliability of the financial information presented for those years. An independent auditor has examined the financial statements and expressed an opinion on whether they are presented fairly in accordance with accounting principles generally accepted in the United States of America.

The notes to the financial statements cover various aspects of 7 Brew's financial position and operations, including the nature of operations, accounting policies, significant estimates, concentrations, and subsequent events. These notes provide additional context and detail to help understand the financial statements. For example, the notes discuss revenue recognition, advertising costs, leases, and related party transactions.

Prospective franchisees should carefully review both the audited financial statements and the unaudited financial statements, along with the accompanying notes, to gain a comprehensive understanding of 7 Brew's financial performance and position. Understanding the difference between audited and unaudited statements is crucial for assessing the financial health of the franchise.