What is the significance of the December 31 date for Augusta Lawn Care's financial statements?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Management of AUGUSTA FRANCHISE LLC
Opinion
We have audited the financial statements of AUGUSTA FRANCHISE LLC (the "Company"), which comprise the Balance Sheet as of December 31, 2024 & December 31, 2023 & December 31, 2022, the related Profit & Loss Statements, the related Statements of Cashflows, the related Statements of Shareholders' Equity, and the related notes for the twelve-month periods then ended. (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 & December 31, 2023 & December 31, 2022, and the results of its operations and its cash flows for the twelve-month periods then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, December 31 is the date used to mark the end of the company's financial year. The independent accountant's audit report includes the Balance Sheets as of December 31, 2024, December 31, 2023, and December 31, 2022, along with related financial statements for the twelve-month periods then ended. This indicates that Augusta Lawn Care assesses its financial position and performance on a yearly basis, concluding each period on December 31.
This date is significant because it provides a consistent reference point for evaluating the company's financial health and trends over time. Potential franchisees can review these audited financial statements to understand Augusta Lawn Care's revenue, expenses, assets, and liabilities as of that date. The financial statements include the Profit & Loss Statements, Statements of Cashflows, and Statements of Shareholders' Equity, offering a comprehensive view of the company's financial activities.
Furthermore, the Item 19 financial performance representations also use December 31 as a cut-off date. For example, Table 1 and Table 2 include data from locations opened between January 1, 2024, and December 31, 2024. This consistency in using December 31 allows prospective franchisees to align the franchisor's overall financial reporting with specific performance data from franchise locations, aiding in their assessment of potential profitability and operational benchmarks.