Does the Best Brains FDD state if the revenue from operations is audited?

According to the 2025 Best Brains Franchise Disclosure Document, the financial statements for the fiscal years ending December 31, 2024, 2023, and 2022 are audited. Additionally, the FDD includes an unaudited Balance Sheet as of March 31, 2025, and an unaudited Profit & Loss Statement for the period from January 1, 2025, to March 31, 2025.

The inclusion of audited financial statements for previous years provides prospective franchisees with a degree of confidence in the financial health and stability of Best Brains. These statements have been reviewed by independent CPAs, who have expressed their opinion on the fairness of the presentation of Best Brains's financial position and operating results.

However, the presence of unaudited financial statements also carries implications. The Best Brains FDD explicitly states that "THESE FINANCIAL STATEMENTS ARE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM." This disclaimer highlights that these particular statements have not undergone the same rigorous verification process as the audited statements, and prospective franchisees should exercise caution when relying on them.

It is standard practice for franchisors to include audited financial statements in their FDDs to comply with regulatory requirements and provide transparency to potential franchisees. The inclusion of both audited and unaudited statements in the Best Brains FDD is not unusual, but it is crucial for franchisees to understand the difference in the level of assurance provided by each.