Does the Browns Chicken FDD include an independent auditor's report?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
To Management Brown's Chicken, LLC Villa Park, Illinois
Opinion
We have audited the accompanying financial statements of Brown's Chicken, LLC which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the related consolidated statements of operations, changes in members' equity, and cash flows for the years then ended 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 Brown's Chicken, LLC as of December 31, 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 audit 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 Brown's Chicken, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. 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 Financial Statements
Management is responsible for the preparation and fair presentation of these 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 Brown's Chicken, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
Yes, the 2025 Browns Chicken FDD includes an independent auditor's report. The report, addressed to the management of Brown's Chicken, LLC in Villa Park, Illinois, contains the auditor's opinion on the consolidated financial statements. These statements comprise the balance sheets as of December 31, 2023 and 2022, and the statements of operations, changes in members' equity, and cash flows for the years then ended, along with related notes. The auditor's opinion states that the financial statements present fairly the financial position of Browns Chicken as of December 31, 2023 and 2022, and the results of its operations and cash flows for those years, in accordance with accounting principles generally accepted in the United States of America.
The auditor's report outlines the responsibilities of both the management and the auditor. Management is responsible for preparing and fairly presenting the financial statements, including internal controls. The auditor's responsibility is to express an opinion on these financial statements based on their audit. The audit was conducted in accordance with auditing standards generally accepted in the United States of America, ensuring independence and adherence to ethical requirements. The auditors believe they have obtained sufficient and appropriate evidence to support their opinion.
The audit aims to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. However, reasonable assurance is not absolute, and there's a risk that material misstatements may not always be detected. The auditor's procedures include exercising professional judgment, assessing risks, examining evidence, understanding internal controls (though not expressing an opinion on their effectiveness), and evaluating accounting policies and estimates. The report also mentions the auditor's responsibility to communicate significant findings and internal control matters to those charged with governance.
The independent audit report in the Browns Chicken FDD is a standard practice in franchising, providing potential franchisees with an added layer of confidence in the financial information presented. It confirms that an independent firm has reviewed Browns Chicken's financial statements and found them to be fairly presented. This helps franchisees make informed decisions about investing in the franchise.