Are the audited financial statements of GoTo Foods included in the Auntie Annes FDD?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 31, 2023 and December 25, 2022 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 31, 2023 and December 25, 2022. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 105–106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the audited financial statements of both GoTo Systems and GoTo Foods are included. Specifically, the FDD states that the audited financial statements of GoTo Systems, the parent company, are attached as Exhibit A. These include consolidated balance sheets as of December 31, 2023, and December 25, 2022, along with statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021.
In addition to GoTo Systems' financials, the 2024 Auntie Anne's FDD also includes the audited financial statements of GoTo Foods as of and for the fiscal years ending December 31, 2023, and December 25, 2022. These statements are provided for disclosure purposes. It is important to note that while GoTo Foods provides support and services to Auntie Anne's franchisees under a management agreement, it is not a party to the Franchise Agreement and does not guarantee obligations under it.
The inclusion of these financial statements provides prospective Auntie Anne's franchisees with insight into the financial health and stability of both the parent company and the entity providing support services. This information can be valuable in assessing the overall risk and potential success of the franchise venture. Franchisees should carefully review these statements and consult with a financial advisor to fully understand their implications.