Are there any notes or qualifications regarding the revenue from operations figures for Best Brains?

According to Best Brains' 2025 Franchise Disclosure Document, several notes and qualifications pertain to the financial statements, which include revenue from operations. The financial statements for the fiscal years ending December 31, 2024, 2023, and 2022 are audited, while the Balance Sheet as of March 31, 2025, and the Profit & Loss Statement for the period from January 1, 2025, to March 31, 2025, are unaudited. The FDD explicitly states that the unaudited financial statements were prepared without an audit and that no Certified Public Accountant has audited these figures or expressed an opinion on their content or form. This indicates a lower level of assurance regarding the accuracy of the unaudited figures. Prospective franchisees should be aware that the franchisor's financial performance data is more reliable when it is based on audited statements.

Additionally, the preparation of Best Brains' financial statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates are regularly evaluated and adjusted when necessary. This introduces a degree of subjectivity into the financial reporting, as actual results could differ from these estimates due to various risks and uncertainties, such as changes in the beverage industry, competition, litigation, legislation, and regulations.

Best Brains also has related party transactions. For the year 2023, these transactions and balances are detailed under the Audit report annexure titled "Related Party Disclosures". These transactions include the purchase and sale of materials/services with entities like Best Brains India, Advansoft International Inc, Advansoft India, A1 Kaiser, Best Brains of Schaumburg, INC, Adventures India Pvt. Ltd, Best Brains- Canada, and Nala Robotics. Understanding these related-party transactions is crucial, as they can impact the company's financial position and operations. For instance, the purchase of materials/services from Best Brains India amounted to $1,096,075.00 in 2023.

Prior year's figures may have been regrouped, rearranged, or re-casted to conform to the current year's classification. This means that the presentation of financial information may not be consistent across all periods, which could affect comparability. Furthermore, Best Brains obtained an SBA loan of $150,000 on May 18, 2020, with interest accruing at 3.75% per annum. Interest of $8,041 was paid in 2023, but no principal repayments were made. This debt obligation should be considered when evaluating the company's financial health.