When auditing Camp Margaritaville, what must be concluded regarding the company's ability to continue as a going concern?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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 financial statements that are free of 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 for one year after the date that the financial statements are available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, management is responsible for evaluating the company's ability to continue as a going concern for one year after the financial statements are issued. This evaluation involves assessing whether there are conditions or events that, when considered in the aggregate, raise substantial doubt about the company's ability to continue operating.
The independent auditor's report included in the FDD states their opinion that the financial statements of Margaritaville Holdings LLC present fairly, in all material respects, the company's financial position 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. A similar opinion was issued in a prior audit regarding the financial statements as of December 31, 2023 and 2022.
In both audit reports, the auditors state that they conducted their audits in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditors to be independent of the company and to meet ethical responsibilities. The auditors must obtain sufficient and appropriate audit evidence to provide a basis for their opinion. The FDD includes the report of independent auditors regarding the consolidated financial statements of Margaritaville Holdings LLC and its subsidiaries.