Does Better Blend acknowledge the possibility of differences between estimated and actual results in their financial statements?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the company acknowledges that the preparation of financial statements requires management to make estimates and assumptions. These estimates and assumptions can affect the reported amounts of assets, liabilities, contingent items, revenues, and expenses. As a result, Better Blend states that actual results could differ from these initial estimates.
This disclosure is a standard accounting practice, reflecting the inherent uncertainty in predicting future outcomes. Franchisees should understand that the financial statements provided are based on management's best judgment at a specific point in time, but the actual financial performance of a Better Blend franchise may vary.
Prospective franchisees should consider this when reviewing Better Blend's financial statements and should conduct their own due diligence, including seeking professional financial advice, to assess the potential risks and rewards of investing in a Better Blend franchise.