Does the Azal Coffee FDD include financial statements for the previous two fiscal years?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We did not begin offering franchises until July 2024.
EXHIBIT H FINANCIAL STATEMENTS
Balance Sheet
Durar Investment, LLC
As of Jul 11, 2024
ACCOUNTS Jul 11, 2024
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 50–51)
What This Means (2024 FDD)
The 2024 Azal Coffee Franchise Disclosure Document includes a balance sheet as of July 11, 2024. However, it does not explicitly state that financial statements for the previous two fiscal years are included. Item 20 notes that Azal Coffee did not begin offering franchises until July 2024.
Given that Azal Coffee just began offering franchises in July 2024, the absence of financial statements for the previous two fiscal years is not unusual. Newer franchisors may not have an extensive financial history to disclose.
A prospective franchisee should request further clarification from Azal Coffee regarding their financial performance and history. Understanding the financial health and stability of the franchisor is crucial before making an investment decision. Requesting additional financial information can help fill the gaps in the FDD and provide a more complete picture.