What statements are included in the financial statements for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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 have audited the accompanying financial statements of All States M.E.D. Franchising, LLC., which comprise the balance sheet as of August 15, 2023 and the related notes to the financial statements.
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 financial statements as of December 31, 2023, include a balance sheet, statements of operations and members' equity, and cash flows for the period from July 11, 2023 (commencement of operations) to December 31, 2023, and related notes. The financial statements as of August 15, 2023, include a balance sheet and related notes. These financial statements have been audited by Smith, Buzzi & Associates, LLC.
The auditors' report expresses an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of All States M.E.D. in accordance with accounting principles generally accepted in the United States of America. The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS).
The notes to the financial statements include a summary of significant accounting policies, such as the method of accounting (accrual basis), how property and equipment are valued and depreciated (straight-line method over 5 years), and how franchise revenues are recognized. The notes also describe risks facing the company, including legal/regulatory risk, concentration risk, and credit risk, and how the company minimizes those risks. Additionally, the notes mention that All States M.E.D. started offering franchises in August 2023 and discuss subsequent events evaluated by management through April 25, 2024.