What does the opinion state about the fairness of the Bath Tune Up financial statements' presentation?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
To the Management and Board of Directors of JM Family Enterprises, Inc.
Opinion
We have audited the accompanying financial statements of HFC KTU LLC (DBA Kitchen Tune-Up and Bath Tune-Up) (the "Company"), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, of member's equity and of cash flows for the years then ended, including the related notes (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 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 audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune-Up's 2025 Franchise Disclosure Document, the independent auditor's report expresses an opinion on the fairness of the company's financial statements. Specifically, the auditor states that the financial statements present fairly, in all material respects, the financial position of HFC KTU LLC (DBA Kitchen Tune-Up and Bath Tune-Up) as of December 31, 2024 and 2023. The auditor's opinion also covers the results of the company's operations, member's equity, and cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
This opinion is crucial for prospective Bath Tune-Up franchisees because it provides assurance that the financial information presented by the company is reliable and accurate. The audit was conducted in accordance with auditing standards generally accepted in the United States of America (US GAAS), and the auditor believes that sufficient and appropriate audit evidence was obtained to provide a basis for the opinion. This indicates that the auditor followed established procedures and standards to ensure the integrity of the financial statements.
The management of Bath Tune-Up is responsible for the preparation and fair presentation of these financial statements, including the design, implementation, and maintenance of internal controls. The auditor's responsibility is to express an opinion on these statements based on their audit. This division of responsibilities ensures that both the company's management and an independent auditor are involved in the financial reporting process, enhancing the credibility of the financial information.
Furthermore, the auditor's report states that they are required to be independent of the company and to meet other ethical responsibilities. This independence is essential for maintaining objectivity and impartiality in the audit process, which further strengthens the reliability of the auditor's opinion. For a potential franchisee, this independent validation of Bath Tune-Up's financial health can be a significant factor in their investment decision, providing confidence in the financial stability and transparency of the franchise opportunity.