Is there a management discussion and analysis included with the C12 Group financial statements?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| 7 | | Notes to Audited Financial Statements | 8 |
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INDEPENDENT AUDITOR'S REPORT
To the Board of Directors The C12 Group, LLC San Antonio, Texas
Opinion
We have audited the accompanying financial statements of The C12 Group, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related 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 The C12 Group, LLC as of December 31, 2024 and 2023, 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 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 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 the 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 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 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts contain independent auditor's reports on the financial statements of The C12 Group, LLC. These reports detail the auditor's opinion on the fairness of the company's financial position and results of operations. The auditor's responsibilities, management's responsibilities, and the basis for the auditor's opinion are outlined. However, the excerpts do not include a specific section labeled "management discussion and analysis."
While the auditor's report confirms that management is responsible for the preparation and fair presentation of the financial statements, and for evaluating the company's ability to continue as a going concern, it does not explicitly state that a management discussion and analysis is included. The notes to the consolidated financial statements provide some context regarding the company's operations, organization, and accounting policies, but this is distinct from a comprehensive management discussion.
A prospective franchisee should specifically inquire with C12 Group about whether a management discussion and analysis is a standard component of their audited financial statements. This would provide valuable insights into management's perspective on the company's performance, key trends, and future outlook, which is not evident from the auditor's report alone.