Are the Bb.Q Chicken financial statements consolidated?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
TION PLAZA RIDGEFIELD PARK, NJ 07660 TEL: (201)699-0969 FAX:(201)917-5017
sseo@scjcpa.com
Independent Auditors' Report
To the Board of Director and Stockholders of BBDOTQ USA, Inc.:
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of BBDOTQ USA, Inc and its subsidiaries (the 'Company") which comprise the balance sheet as of December 31, 2023 and 2022, and the related statements loss and retained deficit and cash flows for the years then ended and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and the fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America: this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the financial statements are consolidated. The Independent Auditor's Report covers the consolidated financial statements of BBDOTQ USA, Inc. and its subsidiaries for the years ended December 31, 2024, and 2023. The notes to the consolidated financial statements clarify that these statements include the accounts of the company and all subsidiaries where ownership exceeds 50 percent, or involve certain "variable interest entities." Any transactions or profits between these consolidated entities are eliminated during the consolidation process.
This consolidation provides a comprehensive view of Bb.Q Chicken's financial health, combining the financial performance of the parent company and its subsidiaries. This approach is standard in franchise systems where the franchisor has multiple subsidiary entities. The consolidated statements offer a more accurate representation of the overall financial position, results of operations, and cash flows of the entire Bb.Q Chicken organization.
For a prospective franchisee, understanding that the financial statements are consolidated is crucial because it provides insight into the financial stability and performance of the entire Bb.Q Chicken network, not just the parent company. Reviewing these consolidated statements can help potential franchisees assess the financial risks and opportunities associated with investing in a Bb.Q Chicken franchise. It is important to note that the auditor's report, included with the financial statements, expresses an opinion on the fairness of the presentation of the consolidated financial position of Bb.Q Chicken and its subsidiaries.