Where in the Best In Class Education Center FDD can I find the audited financial statements?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying notes are an integral part of the financial statements.
BIC Franchise System Corporation December 31, 2024 and 2023 Notes To Financial Statements
1. COMPANY AND NATURE OF OPERATIONS
BIC Franchise System Corporation (the Company) was formed in the state of Delaware on February 10, 2023, for the purpose of offering franchise opportunities to entrepreneurs who want to develop and operate a Best-in-Class Center. The Company offers qualified individuals the right to operate an education center that provides school-aged children with supplemental learning opportunities in the areas of Mathematics and English as well as SAT and ACT preparation courses under the "Best in Class" mark.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company's financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements.
A. Basis of Accounting
The Company's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
B. Cash and Cash Equivalents
For purposes of the Statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less to be cash equivalents.
C. Accounts Receivable
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, the audited financial statements, along with accompanying notes, are included in the document. Specifically, the notes to the financial statements as of December 31, 2024 and 2023, are provided. These notes offer context and details about the company's financial status and accounting practices. The notes are integral to understanding the financial statements.
The financial statements have several components. The notes include information about the company's formation, its purpose of offering franchise opportunities for Best In Class Education Centers, and the services it provides, such as supplemental learning in Mathematics and English, as well as SAT and ACT preparation. The notes also summarize significant accounting policies, including the basis of accounting, which conforms to generally accepted accounting principles (GAAP) in the United States.
Furthermore, the notes define cash and cash equivalents for the statement of cash flows, including bank accounts and cash in transit with maturities of three months or less. They also address accounts receivable, which primarily come from franchise owners' continuing fees (royalties) collected monthly. The company provides an allowance for doubtful collections based on reviews of outstanding accounts, historical data, economic conditions, and other factors. The notes also mention that no allowance for uncollectible accounts was required as of December 31, 2023.
These audited financial statements and accompanying notes are essential for prospective franchisees to review in order to assess the financial health and stability of Best In Class Education Center. Reviewing these documents can help potential franchisees make informed decisions about investing in a franchise.