Regarding the Aerus financial statements, does the FDD advise prospective franchisees to be aware that no independent certified public accountant has expressed an opinion on their content or form?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
UNAUDITED FINANCIAL STATEMENTS
THESE FINANCIAL STATEMENTS HAVE BEEN PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED AN OPINION WITH REGARD TO THEIR CONTENT OR FORM.
Aerus Franchising Balance Sheet As of March 31, 2025
Cash & Cash Equivalents - 550 - 550 Accounts Receivable 1,230,488 1,230,488 Accounts Receivable - Reserve - 621,173 - 621,173 1915 -Inventory - Consigned 1,717,427 1,717,427 Prepaid Expenses 37,586 37,586 2,363,778 Long Term Receivables 135,602 135,602 Property Plant & Equipment 81,409 Accumulated Depreciation - 81,409 Assets Current Assets Cash Accounts Receivable Accounts Receivable - Reserve Total Cash Total A/R Total A/R - Reserve Inventory Inventory - Reserve Prepaid Expenses Total Inventory Total Prepaid Expenses Total Current Assets Long Term Receivables Total LT Receivables Property Plant & Equipment
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, prospective franchisees should be aware that the financial statements as of March 31, 2025, were not audited by an independent certified public accountant. The FDD explicitly states that no independent certified public accountant has audited these figures or expressed an opinion regarding their content or form. This lack of independent auditing could mean that the financial data has not been subjected to external verification, potentially increasing the risk of inaccuracies or misstatements.
Specifically, the unaudited balance sheet as of March 31, 2025, includes figures for assets such as cash & cash equivalents ($550), accounts receivable ($1,230,488), and inventory ($1,717,427). It also lists liabilities. However, because these figures are unaudited, prospective franchisees should exercise caution and conduct their own due diligence to verify the financial health of Aerus.
While the FDD includes an Independent Auditor's Report and audited financial statements for the years ending December 31, 2024, 2023 and 2022, the inclusion of unaudited financials suggests that more current data is being presented without the same level of scrutiny. A potential franchisee should consider consulting with a financial advisor or accountant to review these unaudited statements and assess the financial stability and performance of Aerus. They should also inquire with Aerus about the reasons for providing unaudited statements and whether audited statements for the corresponding period will be available in the future.