What is the purpose of including financial statements in the Beverly Anns Cookie Franchise Disclosure Document?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Issuance Date: July 2, 2025
I received a disclosure document issued July 2, 2025 which included the following exhibits:
Exhibit A State Administrators/Agents for Service of Process Exhibit B Financial Statements Exhibit C Franchise Agreement Exhibit D Franchise Disclosure Questionnaire Exhibit E Brand Manual Table of Contents Exhibit F List of Current and Former Franchisees Exhibit G State Addenda and Agreement Riders Exhibit H Contracts for use with the Beverly Ann's Cookie Franchise Exhibit I State Effective Dates Exhibit J Receipt
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, Exhibit B includes the franchisor's financial statements. The purpose of including these statements is to provide potential franchisees with an overview of the franchisor's financial health. This allows prospective franchisees to assess the stability and viability of Beverly Anns Cookie before investing in a franchise.
By reviewing these financial statements, a potential Beverly Anns Cookie franchisee can evaluate the franchisor's revenues, expenses, assets, and liabilities. This information can help them understand the franchisor's profitability, debt levels, and overall financial condition. This is a standard practice in franchising, ensuring transparency and informed decision-making.
It is important for prospective franchisees to carefully analyze these financial statements, possibly with the help of a financial advisor, to fully understand the financial risks and opportunities associated with investing in a Beverly Anns Cookie franchise. Evaluating the franchisor's financial stability is a crucial step in the due diligence process before making a final decision.