Are there any qualifications or disclaimers in the auditor's opinion on the Brain Balance financial statements?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Independent Auditor's Report
To the Member BB Franchising, LLC
Opinion
We have audited the financial statements of BB Franchising, LLC (the "Company"), which comprise the balance sheet as of December 31, 2024, 2023, and 2022 and the related statements of operations, changes in member's equity (deficit), and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 2023, and 2022 and the results of its operations and its cash flows for the years then ended 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 (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Financial Statements section of our report. We are required to be independent of the Company and to meet our 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.
Responsibilities of Management for the Financial Statements
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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.
Auditor's Responsibilities for the Audits of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 70)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the independent auditor's report expresses an unqualified opinion on the company's financial statements. The auditor states that the financial statements present fairly, in all material respects, the financial position of BB Franchising, LLC as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
The report details the responsibilities of both the management and the auditor in relation to the financial statements. Management is responsible for the preparation and fair presentation of the financial statements and for maintaining internal controls. The auditor's responsibility is to conduct audits in accordance with generally accepted auditing standards (GAAS) to obtain reasonable assurance about whether the financial statements are free from material misstatement.
The auditor's report also clarifies that reasonable assurance is not absolute assurance and that there is a risk of not detecting a material misstatement, especially one resulting from fraud. The auditor's procedures include examining evidence on a test basis and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management. These statements are standard disclaimers and clarifications within an independent auditor's report and do not represent qualifications to the opinion expressed on Brain Balance's financial statements.