Are the financial statements for Browns Chicken audited?
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the financial statements are indeed audited by an independent auditor. The Independent Auditor's Report states that Catalano, Caboor & Co. has audited 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, including the related notes to the financial statements.
The auditor's opinion is that the financial statements present fairly, in all material respects, the financial position of Browns Chicken 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. The audit was conducted in accordance with auditing standards generally accepted in the United States of America, ensuring independence and adherence to ethical requirements.
For a prospective Browns Chicken franchisee, this signifies that an independent and qualified firm has reviewed Browns Chicken's financial records and provided an opinion on their accuracy and reliability. This can provide a higher level of confidence in the financial information presented. The auditor's report also outlines the responsibilities of both Browns Chicken's management and the auditor in the financial reporting process, offering further transparency.
It is important to note that while the audit provides reasonable assurance, it is not an absolute guarantee against material misstatements. The auditor's report explicitly states that reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. Despite this limitation, an audited financial statement is generally considered more reliable than unaudited ones, which are prepared solely by the company's management.