Are the financial statements for Aunt Millies Bakeries audited?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the financial statements of Perfection Bakeries, Inc., which operates as Aunt Millie's Bakeries, are audited. Item 21 and the included exhibits contain the audited consolidated balance sheets as of September 30, 2024 and 2023, and September 30, 2023 and 2022, along with the related consolidated statements of income, comprehensive income/loss, and cash flows for the years then ended, and the related notes to the financial statements.

The inclusion of audited financial statements is a standard practice in franchising, as it provides potential franchisees with an added layer of assurance regarding the financial health and stability of the franchisor. An independent auditor's report is included, offering an opinion on the fairness of the presentation of Perfection Bakeries, Inc.'s financial position and results of operations as of specific dates. This report confirms that the audit was conducted in accordance with generally accepted auditing standards (GAAS).

The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. They also evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. This process involves exercising professional judgment and maintaining professional skepticism throughout the audit.

Prospective franchisees should review these audited financial statements and the accompanying notes carefully to understand Aunt Millie's Bakeries' financial performance, including revenues, expenses, assets, liabilities, and cash flows. Understanding the franchisor's financial condition is crucial for assessing the risks and potential rewards of investing in an Aunt Millie's Bakeries franchise.