Are Bhc's financial statements presented according to GAAP?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the accompanying consolidated financial statements of BHC USA LLC (a California Limited Liability Company) and its subsidiaries, which comprise the consolidated balance sheet as of December 31, 2024, and the consolidated related statem , and cash flows for the year then ended, and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of BHC USA LLC and subsidiaries as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.
Source: Item 21 — Financial Statements (FDD page 52)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the independent auditor's report states that the consolidated financial statements of BHC USA LLC and its subsidiaries as of December 31, 2024, are presented fairly in accordance with accounting principles generally accepted in the United States of America. This indicates that Bhc's financial statements are prepared following GAAP (Generally Accepted Accounting Principles).
The auditor, CHI & NAM LLP, conducted the audit in accordance with auditing standards generally accepted in the United States of America. Their opinion confirms that the financial statements accurately reflect Bhc's financial position, results of operations, and cash flows for the year then ended. Management is responsible for preparing these statements in accordance with GAAP and maintaining internal controls relevant to this preparation.
Furthermore, Note 1 to the Consolidated Financial Statements, titled "Nature of Business and Summary of Significant Accounting Policies," explicitly states that the accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements. This reinforces the adherence to GAAP in Bhc's financial reporting practices. Prospective franchisees can typically rely on GAAP-compliant financials as providing a standardized and transparent view of the company's financial health.