When auditing Bft, do the audit procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis?

According to Bft's 2025 Franchise Disclosure Document, when performing an audit in accordance with Generally Accepted Auditing Standards (GAAS), the audit procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis. This is done to identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and to design and perform audit procedures responsive to those risks.

This means that the auditor does not review every single transaction or piece of data, but instead selects a sample to examine. This approach is standard in auditing because it allows the auditor to form an opinion on the financial statements without needing to verify every single item, which would be too time-consuming and costly. The selection of which items to test is based on the auditor's assessment of risk; areas with higher risk of misstatement will be subject to more rigorous testing.

For a prospective Bft franchisee, this indicates that the financial statements presented in the FDD have been reviewed by an independent auditor who has followed standard auditing procedures. While the audit provides a level of assurance about the accuracy of the financial statements, it is not a guarantee that there are no errors or fraud. Franchisees should still carefully review the financial statements and consider seeking advice from a financial professional to fully understand the financial condition of Bft.