What is Body Brain Center management responsible for designing, implementing, and maintaining regarding financial statement preparation?

According to Body Brain Center's 2025 Franchise Disclosure Document, management is responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the company's financial statements. These controls are intended to ensure that the financial statements are free from material misstatement, whether due to fraud or error. This responsibility aligns with generally accepted accounting principles in the United States of America.

In practical terms, this means Body Brain Center's management must establish and oversee procedures and policies that ensure the accuracy and reliability of financial reporting. This includes things like segregation of duties, proper documentation, and regular reconciliation of accounts. They must also ensure that the company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

Prospective franchisees should understand that the accuracy and reliability of Body Brain Center's financial statements depend on these internal controls. If these controls are weak or ineffective, there is a greater risk of financial misstatements, which could impact the franchisee's investment decision. Therefore, it is important for potential franchisees to review the company's audited financial statements and consider the auditor's opinion on the fairness of the presentation.