Why doesn't Better Blend include all financial statements required by the Franchise Rule?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
INDEPENDENT AUDITOR'S REPORT
Board of Members of Better Blend Franchising, LLC
Opinion
We have audited the financial statements of Better Blend Franchising, LLC (the "Company"), which comprise the balance sheet as of December 31, 2023, the related statements of operations, member's deficit, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements presents fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statement section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statement
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of a financial statements that is free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statement is issued or available to be issued.
3565 Piedmont Road, NE Building One, Suite 400 Atlanta, GA 30305 T: 678.456.5157 | F: 470.558.3884
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Better Blend Franchise Disclosure Document, the company includes audited financial statements. These statements include an independent auditor's report and cover the balance sheet, statements of operations, member's deficit, and cash flows for the year ending December 31, 2023. The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.
Better Blend's financial statements also include notes that provide additional details on the company's accounting policies, revenue recognition, deferred revenue, related party transactions, and other relevant financial information. Specifically, the notes address the nature of Better Blend's business, the use of estimates in preparing the financial statements, cash equivalents, royalties receivable, and revenue recognition practices. These notes offer further insight into how Better Blend manages its finances and recognizes revenue from its franchising activities.
The inclusion of these audited financial statements and accompanying notes aims to provide prospective franchisees with a clear and transparent view of Better Blend's financial health and stability. The independent auditor's report assures that the financial statements are fairly presented in accordance with established accounting principles. This allows potential franchisees to make informed decisions about investing in a Better Blend franchise, based on reliable financial information.