What is the purpose of the financial statements provided for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholder of All Team Franchise Corporation
Opinion
We have audited the accompanying financial statements of All Team Franchise Corporation (a Florida corporation) which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of All Team Franchise Corporation as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of All Team Franchise Corporation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. 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 these 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 page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the financial statements included in Item 21, along with the independent auditor's report, are intended to present fairly the financial position, results of operations, and cash flows of All Team Franchise Corporation. The auditor's opinion confirms that these statements are prepared in accordance with accounting principles generally accepted in the United States of America. These statements include balance sheets, statements of operations, changes in stockholder's equity, and cash flows, along with related notes. The financial statements for All Team are audited for the years ending December 31, 2024 and 2023.
The management of All Team is responsible for preparing these financial statements and ensuring they are free from material misstatement, whether due to fraud or error. They are also required to evaluate All Team's ability to continue as a going concern. The auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatement and to issue a report that includes their opinion. This involves exercising professional judgment, assessing risks, understanding internal controls, and evaluating accounting policies.
The financial statements provide prospective franchisees with an overview of All Team's financial health and stability. By reviewing these documents, potential franchisees can assess the franchisor's ability to support its franchisees and meet its financial obligations. The inclusion of audited financial statements and an independent auditor's report enhances the credibility of the financial information, offering a higher level of assurance compared to unaudited statements. All Team's financial statements include balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
It is important to note that while the auditor aims to provide reasonable assurance, this is not an absolute guarantee that all misstatements will be detected. The risk of not detecting material misstatements resulting from fraud is higher than from errors. Therefore, prospective franchisees should carefully review the financial statements and consider seeking advice from a financial professional to fully understand the implications.