Are the financial statements for Amerispec Inspection Services presented on a consolidated basis?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
e items for 2023 were affected by the correction.
| Future maturities of notes payable as of December 31, 2024 are as follows: | ||
|---|---|---|
| 2025 | $821,429 | |
| 2026 | 821,429 | |
| 2027 | 171,429 | |
| 2028 | 171,429 | |
| 2029 | 5,451,660 | |
| Thereafter | 342,856 |
Note 3. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated financial statements are presented for the year ended December 31, 2024 and the period from March 31, 2023 through December 31, 2023 (the "period ended December 31, 2023").
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Source: Item 21 — Financial Statements (FDD page 46)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the financial statements are presented on a consolidated basis. The Independent Auditor's Report states that the audit was conducted on the consolidated financial statements of TCB Services HoldCo, LLC and Subsidiaries, which includes consolidated balance sheets as of December 31, 2024 and 2023, and related consolidated statements of comprehensive loss, changes in members' equity, and cash flows for the year ended December 31, 2024, and the period from March 31, 2023, to December 31, 2023.
Furthermore, Note 3, which summarizes significant accounting policies, confirms that the consolidated financial statements have been prepared according to accounting principles generally accepted in the United States of America. This note also clarifies that the accompanying consolidated financial statements include the accounts of the company, with all significant intercompany balances and transactions eliminated during consolidation.
This indicates that the financial performance and position of Amerispec Inspection Services and its subsidiaries are combined into one overall report, giving a comprehensive view of the entire organization's financial health. A prospective franchisee can gain insight into the overall financial stability of the entire Amerispec Inspection Services network, rather than just the franchisor entity alone.