Are the Aplus financial statements presented on a consolidated basis?

According to Aplus's 2024 Franchise Disclosure Document, the financial statements are presented on a consolidated basis. Item 22 lists the documents included in the FDD, and it specifically mentions "Consolidated Balance Sheets," "Consolidated Statements of Operations and Comprehensive Income," "Consolidated Statements of Equity," and "Consolidated Statements of Cash Flows." Additionally, Note 1 to the financial statements is titled "Organization and Principles of Consolidation," which further confirms that the financial statements are consolidated.

The inclusion of consolidated financial statements is a standard practice for franchise systems like Aplus that have multiple subsidiaries or affiliated entities. Consolidated statements provide a comprehensive view of the overall financial health and performance of the entire Aplus organization, rather than showing the financial results of each entity separately. This gives prospective franchisees a better understanding of the financial stability of Aplus as a whole.

The notes to the consolidated financial statements are an integral part of understanding Aplus's financial position. These notes provide additional details and explanations about the figures presented in the balance sheets, income statements, statements of equity, and cash flow statements. For example, Note 1 discusses the "Organization and Principles of Consolidation," while other notes cover topics such as acquisitions, accounts receivable, inventories, property and equipment, debt, and related-party transactions. Reviewing these notes is essential for a thorough understanding of Aplus's financial statements.