Are the financial statements for Holdco audited in relation to the Beef O Bradys franchise?

According to Beef O Bradys's 2025 Franchise Disclosure Document, the financial statements for Holdco are indeed audited. Specifically, Item 21 states that the audited financial statements of Holdco as of December 31, 2024, December 31, 2023, and December 31, 2022, are attached as Exhibit A.

This is a standard practice in franchising, as audited financial statements provide an independent and reliable assessment of the financial health of both the franchisor (FSC Franchise Co., LLC) and its parent company (Holdco, or FSC Franchise Holdings, LLC). The inclusion of Holdco's audited statements is particularly important because Holdco guarantees the obligations of the franchisor under the Franchise Agreement. This means that if FSC Franchise Co., LLC is unable to fulfill its obligations, Holdco steps in to ensure those obligations are met.

For a prospective Beef O Bradys franchisee, this provides an added layer of security. Knowing that Holdco, a parent entity, has the financial capacity and willingness to guarantee the franchisor's performance can be reassuring. It suggests that the Beef O Bradys franchise system has a stable financial backing, which can be a critical factor in making an informed investment decision. Reviewing these audited statements in Exhibit A is a crucial step in the due diligence process.