Is there a disclaimer included in the Belocal financial statements?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
atement, whether due to fraud or error.
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 the Company's ability to continue as a going concern within one year from the date the financial statements are 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 but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.
| Name | Ownership Interest in | Nature of Interest |
|---|---|---|
| Franchisee | ||
| As of June 30, | 2025 | |
| TO SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE OF THE SEE STATE |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Item 23 addresses receipts and includes information regarding the audit of the financial statements. It states that the management is required to evaluate conditions or events that could raise substantial doubt about the company's ability to continue as a going concern within one year from the date the financial statements are issued.
Furthermore, the auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. However, reasonable assurance is not absolute, and there is a risk that material misstatements resulting from fraud may not always be detected. Misstatements are considered material if they could reasonably be expected to influence the economic decisions of users based on these financial statements.
Additionally, the document states that Belocal is required to disclose uncertain tax positions in accordance with FASB ASC 740-10, Income Taxes. Income tax benefits are only recognized if it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. Belocal believes that its income tax filing positions will be sustained upon examination and has not recorded any reserves or related accruals for interest and penalties for uncertain income tax positions as of June 30, 2025 and 2024. This can provide a level of comfort for potential franchisees, but they should still conduct their own due diligence.