Are the financial statements included in the Apricot Lane FDD unaudited or audited?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders Country Visions, Inc. Fairfield, CA
Opinion
We have audited the accompanying financial statements of Country Visions, Inc. (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company 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 (GAAS). 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 the Company, 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the financial statements of Country Visions, Inc., which operates as Apricot Lane, have been audited by certified public accountants. The Independent Auditors' Report included in the FDD indicates that the financial statements for the years ending December 31, 2024 and 2023, have been audited. This includes balance sheets, statements of income, changes in stockholders' equity, and cash flows.
The presence of an independent auditor's report signifies that a qualified accounting firm has examined the financial statements and provided an opinion on whether they fairly present the company's financial position and results of operations in accordance with generally accepted accounting principles (GAAP). The auditors state they conducted their audits in accordance with auditing standards generally accepted in the United States of America (GAAS).
For a prospective Apricot Lane franchisee, audited financial statements provide a higher level of assurance regarding the accuracy and reliability of the financial information presented. This can be crucial in making an informed investment decision, as it suggests that the franchisor's financial performance has been scrutinized by an independent third party. Franchisees should review these statements and the accompanying notes carefully to understand the franchisor's financial health and stability.
In contrast, Item 19 in the Apricot Lane FDD notes that the gross revenues reported by franchisees are derived from unaudited financial reports submitted for royalty calculations. This highlights a distinction between the franchisor's audited financials and the unaudited data provided by individual franchisees. While the franchisor's financial statements undergo a formal audit, the franchisees' revenue figures are based on self-reported data, which may not have the same level of verification.