What does the inclusion of audited financial statements in the Bee Organized FDD indicate?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Statements of Income and Members' Equity | 4 | | Statements of Cash Flows | 5 | | Notes to Financial Statements | 6 -7 |
Karlin & Long, LLC Certified Public Accountants
To the Partners Bee Organized Enterprises, LLC 4227 W 104th Terr Overland Park, KS 66207
Opinion
We have audited the accompanying financial statements of Bee Organized Enterprises, LLC (a for profit organization), which comprise the statements of financial position as of December 31, 2024, 2023, and 2022 and the related statements of activities and cash flows for the years then ended, and the related notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material aspects, the financial position of Bee Organized Enterprises, LLC as of December 31, 2024, 2023 and 2022 and the changes in its net assets and its cash flow for the years then ended in accordance with accounting principles generally accepted in the Unites States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 Bee Organized Enterprises, LLC 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 opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 error or fraud.
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 Bee Organized Enterprises, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance and therefore is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Bee Organized Enterprises, LLC's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about Bee Organized Enterprises, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Karlin & Long, LLC
Certified Public Accountants
Karlin & Long, LLC
Lenexa, Kansas
January 24, 2025
Overland Park, Kansas
BALANCE SHEETS
As of December 31, 2024, 2023 and 2022
| State B | Franchisee | Contact Information | ||
|---|---|---|---|---|
| CO | Northern Colorado, CO 80538 | Megan Gervais | megang@beeorganized.com 970-699-3377 | |
| Central Denver, CO 80238 | Tara Garfiled, Andrea Stevens | andrea@beeorganized.com tarag@beeorganized.com 303-709-5494 | ||
| NJ | North Jersey Shore, NJ 07931 | Linda DiBias | linda@beeorganized.com 908-529-0599 | |
| PA | North Pittsburgh, PA 16066 | Linette Voytovich | lvoytovich@beeorganized.com 412-822-9354 | |
| TX | Katy, TX 77494 | Leyla Aliyeva | leyla@beeorganized.com 281-673-5227 | |
| VA | North Virginia, VA 20169 | Kelly Tait | ktait@beeorganized.com 703-594-9311 | # BEE ORGANIZED ENTERPRISES, LLC O.P., KS |
STATEMENTS OF INCOME AND MEMBERS' EQUITY
For the years ended Dec 31,2024,2023 and 2022
| Effective Dates | | |---|---| | California | | | Hawaii | | | Illinois | | | Indiana | | | Maryland | | | Michigan | | | Minnesota | | | New York | | | North Dakota | | | Rhode Island | | | South Dakota | | | Virginia | | | Washington | | | Wisconsin | | The accompanying notes to financial statements are an integral part of this statement.
Overland Park, Kansas
STATEMENTS OF CASH FLOWS
For the years ended Dec 31, 2024,2023, and 2022
| Name | Principal Business Address | | Telephone Number | |---|---|---|---| | Lisa Foley | 4350 West 107th Street, Overland Park, Kansas 66207 | (913) 735-6409 | | | Kristen Christian | 4350 West 107th Street, Overland Park, Kansas 66207 | (913) 735-6409 | | | Scott Sjoberg | 4350 West 107th Street, Overland Park, Kansas 66207 | (913) 735-6409 | | | | | | | Overland Park, Kansas
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - Summary of Significant Accounting Policies
Bee Organized Enterprises, LLC is a franchisor of home services. Bee Organized Enterprises, LLC offers a business model and administrative functions for its franchisees. Among these services is marketing materials that are sold to the franchisees, use of website, and others.
Financial Statement Presentation – Bee Organized Enterprises, LLC prepares its financial statements on the accrual basis of accounting in accordance with generally accepted accounting principles. Accordingly, revenues are recorded when earned and expenses are recorded when incurred.
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents – Cash and cash equivalents include cash held in checking accounts.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, the inclusion of audited financial statements signifies that an independent accounting firm, Karlin & Long, LLC, has examined Bee Organized Enterprises, LLC's financial records for the years 2022, 2023, and 2024. This audit provides an opinion on whether the financial statements present fairly the financial position, activities, and cash flows of Bee Organized in accordance with generally accepted accounting principles in the United States of America. The auditor's opinion suggests that the financial statements are free from material misstatements.
The audit was conducted following generally accepted auditing standards, which require the auditors to be independent and meet ethical responsibilities. The auditors are responsible for obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This involves assessing risks, examining evidence, understanding internal controls (though not expressing an opinion on their effectiveness), evaluating accounting policies, and assessing the overall presentation of the financial statements. Management is responsible for the preparation and fair presentation of the financial statements and for maintaining internal controls relevant to this preparation.
For a prospective Bee Organized franchisee, the audited financial statements offer a higher level of confidence in the financial information provided by the franchisor. It means that a third party has reviewed the financial statements and believes they are fairly presented. This can be crucial for making an informed investment decision. However, it is important to note that an audit provides reasonable assurance, not absolute assurance, and there is always a risk that material misstatements may not be detected. The auditor's report also considers whether there are conditions or events that raise substantial doubt about Bee Organized's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Furthermore, the notes to the financial statements, such as Note 1, describe Bee Organized Enterprises, LLC's business as a franchisor of home services, offering a business model and administrative functions to its franchisees, including marketing materials and website use. Note 2 details the company's cash and credit risk, mentioning cash deposits of $664 and $4,514 as of December 31, 2024 and 2023, respectively. Note 3 outlines the revenue recognition policies adopted in accordance with ASC 606, which includes a five-step process. These notes provide additional context and details about the company's financial practices and position.