What is the purpose of including financial statements in the All States M.E.D. FDD?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
ton Franchise Investment Protection Act except when executed according to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those that unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
The undersigned does hereby acknowledge receipt of this addendum.
| FRANCHISEE: | FRANCHISOR: All States M.E.D. Franchising, LLC |
|---|---|
| By: | By: |
| By: | Date: |
EXHIBIT F TO THE DISCLOSURE DOCUMENT FINANCIAL STATEMENTS
Financial Statements
December 31, 2023
(With Independent Auditors' Report Thereon)
SMITH, BUZZI & ASSOCIATES, LLC.
CERTIFIED PUBLIC ACCOUNTANTS 9425 SUNSET DRIVE, SUITE 180 MIAMI, FLORIDA 33173 TEL. (305) 598-6701 FAX (305) 598-6716
JULIO M. BUZZI, C.P.A. MEMBERS:
JOSE E. SMITH, C.P.A. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Members of All States M.E.D. Franchising, LLC.
Report on the Financial Statements
We have audited the financial statements of All States M.E.D. Franchising, LLC., which comprise the balance sheet as of December 31, 2023 and the related statements of operations and members' equity and cash flows for the period from July 11, 2023 ("Commencement of operations") to December 31, 2023 and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position All States M.E.D. Franchising, LLC. as of December 31, 2023, and the results of its operations and its cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of All States M.E.D. Franchising, LLC. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 43–44)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the inclusion of financial statements is to provide prospective franchisees with an overview of the franchisor's financial condition. These statements, which include a balance sheet as of December 31, 2023, and related statements of operations, members' equity, and cash flows, offer insights into the company's financial performance from its commencement of operations on July 11, 2023, to the end of the year. The financial statements are audited by an independent auditor, Smith, Buzzi & Associates, LLC., and their report is included.
The independent auditor's report expresses an opinion on whether the financial statements present fairly the financial position of All States M.E.D. in accordance with accounting principles generally accepted in the United States of America. The auditors conduct their audit in accordance with auditing standards generally accepted in the United States of America (GAAS), which involves assessing the risks of material misstatement of the financial statements, evaluating the appropriateness of accounting policies, and the reasonableness of significant accounting estimates made by management.
Management is responsible for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. The auditor's responsibility is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion.
Prospective franchisees should carefully review these financial statements and the accompanying notes, along with the independent auditor's report, to gain a comprehensive understanding of All States M.E.D.'s financial health and stability. This information can help them assess the risks and potential rewards associated with investing in an All States M.E.D. franchise.