Do the Baya Bar financial statements comply with generally accepted accounting principles (GAAP)?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Independent Auditor's Report
To the Members Baya Bar Franchise System, LLC Staten Island, New York
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of Baya Bar Franchise System, LLC as of December 31, 2023, and 2022 and the related statements of operations, members' equity and cash flows for the years ended December 31, 2023, 2022, and 2021, and the related notes to the financial statements.
In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Baya Bar Franchise System, LLC as of December 31, 2023, and 2022, and the results of their operations and their cash flows for the years ended December 31, 2023, 2022, and 2021, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Baya Bar Franchise System, LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. 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
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Baya Bar Franchise System, LLC's ability to continue as a going concern for one year after the date that the financial statements are issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 55–56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the financial statements have been audited and are presented in accordance with generally accepted accounting principles (GAAP) in the United States of America. The independent auditor's report states that the financial statements of Baya Bar Franchise System, LLC, as of December 31, 2023, and 2022, including the statements of operations, members' equity, and cash flows for the years ended December 31, 2023, 2022, and 2021, present fairly the company's financial position, results of operations, and cash flows in accordance with GAAP.
This opinion from an independent auditor provides assurance to potential Baya Bar franchisees that the financial information presented by the franchisor is reliable and has been prepared using standardized accounting practices. The audit was conducted following generally accepted auditing standards (GAAS) to ensure independence and ethical responsibilities were met. The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, evaluating the appropriateness of accounting policies, and assessing the overall presentation of the financial statements.
Management is responsible for preparing the financial statements in accordance with GAAP and maintaining internal controls relevant to the preparation of fair financial statements. They must also evaluate whether there are conditions that raise substantial doubt about Baya Bar's ability to continue as a going concern for one year after the financial statements are issued. This rigorous process aims to provide transparency and accuracy in the financial reporting, which is crucial for prospective franchisees making informed investment decisions.