For the Buona franchise, what accounting principles were used in the opinion to determine if the financial statements present fairly the financial position of Chicago's Original Italian Beef Franchising LLC?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
To the Members Chicago's Original Italian Beef Franchising LLC Burr Ridge, Illinois 60527
Opinion
We have audited the accompanying financial statements of Chicago's Original Italian Beef Franchising LLC (the Company), which comprise the balance sheet as of December 29, 2024 and December 31, 2023, and the related statements of operations, changes in members' equity (deficit), and cash flows for the fiscal years ended December 29, 2024 and December 31, 2023, 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 Chicago's Original Italian Beef Franchising LLC as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for the fiscal 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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company 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 the 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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the 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 available to be issued.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the independent auditor's report states that the financial statements of Chicago's Original Italian Beef Franchising LLC were audited. The auditor's opinion is that the financial statements present fairly, in all material respects, the financial position of the company as of December 29, 2024, and December 31, 2023, and the results of its operations and its cash flows for the fiscal years then ended.
The basis for this opinion is that the audit was conducted in accordance with auditing standards generally accepted in the United States of America. The auditor believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion. 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, including the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
For a potential Buona franchisee, this information indicates that the company's financial statements have been reviewed by an independent auditor, and the auditor believes they are presented fairly. This can provide some assurance that the financial information provided by the company is reliable. However, it is important for the franchisee to carefully review the financial statements and related notes themselves, and to seek professional advice if needed, to fully understand the company's financial position.