Are the Beehive Homes financial statements consolidated?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
AUDITORS' REPORT
To the Shareholder Bee Hive Homes, Inc. Boise, Idaho
Opinion
We have audited the financial statements of Bee Hive Homes, Inc. (an S corporation), which comprise the balance sheets as of December 31, 2024, 2023, and 2022, and the related statements of income, changes in shareholder's deficit, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Bee Hive Homes, Inc. as of December 31, 2024, 2023, and 2022, 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 34)
What This Means (2025 FDD)
According to the 2025 FDD, the financial statements provided for Beehive Homes, Inc. are not consolidated. The Independent Auditors' Report states that the audit covers the financial statements of Bee Hive Homes, Inc. specifically, including balance sheets as of December 31 for the years 2024, 2023, and 2022, along with related statements of income, changes in shareholder's deficit, and cash flows for those years. There is no mention of consolidated entities or subsidiaries in the auditor's opinion. This indicates that the financial statements reflect only the financial position and performance of Bee Hive Homes, Inc. as a standalone entity.
For a prospective Beehive Homes franchisee, this means the financial information presented provides a clear view of the franchisor's individual financial health and performance, without the complexities of consolidated results that would include subsidiaries or affiliated companies. Understanding the franchisor's financial stability is crucial for franchisees, as it can impact the level of support, resources, and overall stability of the franchise system.
However, it is important to note that the absence of consolidated financial statements does not necessarily indicate a lack of affiliated entities. Beehive Homes may have related companies or subsidiaries that are not included in these financial statements. A potential franchisee may want to inquire about the nature and financial standing of any such related entities, as they could potentially impact the franchise system.
In summary, the financial statements included in the FDD offer insight into the financial condition of Bee Hive Homes, Inc. only. A prospective franchisee should consider this information carefully and may wish to seek additional information regarding any related entities to gain a comprehensive understanding of the Beehive Homes organization.