As a Bft franchisee, can I review Assetco's audited financial statements?
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 audited financial statements are included as Exhibit C. These statements comprise the balance sheets as of December 31, 2024, and 2023, along with related statements of operations, changes in member's equity, and cash flows. The document also includes 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.
Since Assetco was formed in March 2023, the FDD notes that it cannot provide three years of financial statements. Assetco guarantees Bft's obligations under the Franchise Agreements and Multi-Unit Agreements, and a copy of this guarantee is attached as Exhibit D. Both Bft and Assetco have a fiscal year that ends on December 31.
As a prospective franchisee, reviewing these financial statements is crucial for assessing the financial health and stability of Assetco, which guarantees Bft's obligations. This review can help in understanding the financial risks and potential liabilities associated with investing in a Bft franchise. Examining the balance sheets, statements of operations, and cash flows will provide insights into Assetco's profitability, liquidity, and overall financial performance.