Is the auditing firm required to be independent of The C12 Group, LLC?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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 The C12 Group, 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the auditing firm is required to be independent of The C12 Group, LLC. The Independent Auditor's Report states that the audits were conducted in accordance with auditing standards generally accepted in the United States of America. As part of these standards, the auditor is required to be independent of the company and to meet ethical responsibilities relevant to the audit. This requirement ensures that the auditor can provide an unbiased opinion on the financial statements of C12 Group.
For a prospective C12 Group franchisee, this independence is crucial because it provides assurance that the financial information presented by the franchisor has been reviewed by an impartial third party. This helps in making informed decisions about investing in a C12 Group franchise. The auditor's opinion confirms whether the financial statements fairly represent the financial position, results of operations, and cash flows of C12 Group in accordance with accounting principles generally accepted in the United States of America.
The FDD includes Independent Auditor's Reports for the financial statements of The C12 Group, LLC for the years 2021 through 2024. These reports explicitly state the auditor's responsibility to be independent. The audit reports cover consolidated balance sheets, statements of operations and members' capital, and cash flows, providing a comprehensive view of the company's financial performance. The inclusion of these audited financial statements and the explicit statement regarding auditor independence enhance the credibility of the financial information provided in the FDD.