Are Bonchon's balance sheets audited?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITOR'S REPORT
To the Member Bonchon Franchise, LLC
Opinion
We have audited the accompanying financial statements of Bonchon Franchise, LLC (a limited liability company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of income and changes in member's equity and cash flows for each of the years in the threeyear period ended December 31, 2024, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bonchon Franchise, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 Bonchon Franchise, LLC 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 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the company's balance sheets are indeed audited. The FDD includes an Independent Auditor's Report that covers the balance sheets as of December 31, 2024, and 2023, along with related statements of income, changes in member's equity, and cash flows for the three-year period ending December 31, 2024. This report indicates that an audit was conducted by an independent auditor.
The auditor's opinion states that the financial statements present fairly Bonchon's financial position as of December 31, 2024, and 2023, and the results of its operations and cash flows for the relevant period, in accordance with accounting principles generally accepted in the United States of America. The audit was performed following auditing standards generally accepted in the United States of America, ensuring independence and adherence to ethical responsibilities.
The report outlines the responsibilities of both Bonchon's management and the auditor in preparing and auditing the financial statements. Management is responsible for the fair presentation of the financial statements and maintaining internal controls, while the auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement. This includes assessing risks, examining evidence, and evaluating accounting policies.
Prospective franchisees can take assurance from the fact that Bonchon's financial statements are audited, providing an additional layer of scrutiny and reliability. This is a common practice among established franchisors, as audited statements offer greater transparency and credibility compared to unaudited ones. The audit report, dated February 27, 2025, suggests that the financial information is current and has been reviewed by an independent expert.