Do the financial statements for Afuri Ramen Dumpling cover a three-year period?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We have audited the accompanying financial statements of Afuri Franchise, Inc., which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of operations and stockholder's equity and cash flows for the years then ended, and the related notes to the financial statements.
Source: Item 21 — Financial Statements (FDD pages 49–50)
What This Means (2024 FDD)
Based on the 2024 FDD, the provided financial statements for Afuri Ramen Dumpling do not explicitly cover a three-year period. The auditor's report included in the document references audits of the balance sheets as of December 31, 2021, and 2020, along with the related statements of operations, stockholder's equity, and cash flows for the years then ended.
Additionally, the notes to the financial statements provide data for the years ending December 31, 2021, and 2020. For example, related party transactions detail management fees of $175,279 and $98,000 for the years ended December 31, 2021, and 2020, respectively. Advertising expenses are also listed as $12,130 and $15,183 at December 31, 2021, and 2020, respectively.
While the FDD includes financial data for 2020, 2021 and 2023, there are no statements covering all three years. A prospective franchisee should request the franchisor to provide a complete set of audited financial statements covering the past three years to gain a better understanding of the financial performance and trends of Afuri Ramen Dumpling.