Are the financial statements of Assetco audited for the Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this Disclosure Document as Exhibit C are Assetco's audited financial statements which comprise the balance sheets as of December 31, 2024 and 2023, and related statements of operations, changes in member's equity, and cash flows and the related notes to the financial statements for the year ended December 31, 2024 and for the period from March 6, 2023 to December 31, 2023. Assetco was formed in March 2023, and therefore, is unable to provide three years of financial statements. We are a wholly-owned subsidiary of Assetco, and Assetco absolutely and unconditionally guarantees to assume our duties and obligations under the Franchise Agreements and Multi-Unit Agreements entered into while we are the wholly owned subsidiary of Assetco. A copy of the Assetco guarantee is attached as Exhibit D. Our and Assetco's fiscal year ends on December 31 of each year.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Assetco's financial statements are audited. Specifically, the FDD includes Assetco's audited balance sheets as of December 31, 2024, and 2023, along with related statements of operations, changes in member's equity, and cash flows. These statements also include related notes for the year ended December 31, 2024, and for the period from March 6, 2023, to December 31, 2023.
Because Assetco was formed in March 2023, the company cannot provide three years of financial statements. Assetco guarantees Bft's obligations as franchisor. This guarantee is important for prospective franchisees as it provides an additional layer of financial security, ensuring that Assetco will cover Bft's duties under the Franchise Agreements and Multi-Unit Agreements.
The inclusion of audited financial statements for Assetco is a standard practice in franchising, providing transparency and assurance to potential franchisees regarding the financial health of the parent company backing the franchise. This allows franchisees to make a more informed decision about investing in a Bft franchise, knowing that the parent company's financials have been reviewed by an independent auditor.