What auditing standards were followed during the audit of XPOF Assetco, LLC and subsidiaries related to Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements 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 audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the consolidated financial statements of XPOF Assetco, LLC and subsidiaries were audited in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditor's responsibilities under these standards include being independent of the company and meeting ethical requirements related to the audits.
The auditor's report states that the audit evidence obtained was considered sufficient and appropriate to provide a basis for the audit opinion. The opinion expressed is that the financial statements present fairly, in all material respects, the financial position of XPOF Assetco, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the year ended December 31, 2024, and for the period from March 6, 2023, to December 31, 2023, in accordance with accounting principles generally accepted in the United States of America.
Note is made in the audit report that XPOF Assetco, LLC has significant transactions and relationships with its Member, Xponential Fitness LLC, and its affiliates. The report clarifies that the opinion is not modified with respect to this matter, but it does suggest that the financial statements may not be indicative of the results of operations that would have been achieved if the Company had operated without such affiliations. This is a fairly standard disclosure for franchise systems, where the parent company often provides services or support to its subsidiaries.