Are there any notes to the Belocal financial statements?

According to Belocal's 2025 Franchise Disclosure Document, the financial statements include notes. Item 23 lists the Independent Auditor's Report, Financial Statements, Balance Sheets, Statements of Operations, Statements of Changes in Stockholders' Equity, Statements of Cash Flows, and Notes to Financial Statements. The notes begin on page 9 of the financial statements.

These notes cover various aspects of Belocal's accounting practices and financial condition. They address the company's ability to continue as a going concern, significant accounting policies, and certain significant risks and uncertainties. The notes also detail how Belocal handles income taxes, including uncertain tax positions, and disclose subsequent events and recent accounting pronouncements that may affect future financial reporting.

Specifically, the notes explain that Belocal uses the accrual basis of accounting, recognizes revenue when earned, and expenses when incurred. They also discuss the use of estimates in preparing financial statements and the classification of assets and liabilities at fair value. For example, for the years ended June 30, 2025, 2024 and 2023, the Company's affiliate N2 Company provided accounting, marketing and other operating services for the Company. These costs are included in management fees in the statements of operations and were $6,624,000, $6,048,000 and $4,800,000 for the years ended June 30, 2025, 2024 and 2023, respectively.

Prospective franchisees should carefully review these notes to understand the assumptions and judgments underlying Belocal's financial statements. Understanding these accounting practices can help franchisees assess the financial health and stability of the franchisor.