For the C12 Group, what supplementary information is the responsibility of management?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The consolidating balance sheet, consolidating statement of operations and members' capital, and the condensed consolidated statements of operations and members' capital on pages 11 through 13, respectively, are presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information for the year ended December 31, 2022 has been subjected to the auditing procedures applied in the audit of the 2021 consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information for the year ended December 31, 2022 is fairly stated in all material respects in relation to the 2022 consolidated financial statements as a whole. The comparative information for the years ended December 31, 2018 through 2021 has been derived from The C12 Group, LLC's 2018 through 2021 financial statements of which an unmodified opinion was expressed on those financial statements.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group's management is responsible for the consolidating balance sheet, consolidating statement of operations and members' capital, and the condensed consolidated statements of operations and members' capital. These are presented for additional analysis and are not a required part of the consolidated financial statements.
This supplementary information is derived from the underlying accounting and other records used to prepare the consolidated financial statements. The information for the year ended December 31, 2022, has been subjected to auditing procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves.
In essence, while the auditor provides an opinion on the fairness of this supplementary data, the responsibility for its accuracy and preparation rests solely with the C12 Group's management team. Prospective franchisees should understand that the supplementary information offers a deeper dive into the company's financials, but its reliability hinges on management's diligence and adherence to accounting standards.