Do the Belocal financial statements include a statement of retained earnings?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
any law or regulation | |
Going Concern
Management has evaluated our ability to continue as a going concern as of June 30, 2025. Due to the positive income and liquidity position of the Company, we have concluded that there is not significant doubt about our ability to continue as a going concern.
2. Significant Accounting Policies
Basis of Accounting
The Company uses the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ("U.S.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
Based on the 2025 Belocal Franchise Disclosure Document, Item 23 includes the financial statements for Belocal as Exhibit A. While the document mentions that the company's management evaluated their ability to continue as a going concern as of June 30, 2025, and uses the accrual basis of accounting, it does not specifically state whether the financial statements include a statement of retained earnings.
To determine if a statement of retained earnings is included, a prospective franchisee should carefully review Exhibit A, the financial statements themselves, within Item 23 of the FDD. This exhibit will provide the actual financial statements of Belocal, allowing for a direct assessment of whether a statement of retained earnings is present.
If the statement is not present, it is advisable to ask Belocal for clarification on this matter. Understanding the company's retained earnings is crucial for assessing its financial health and stability, which is a key consideration for anyone investing in a franchise.