Does the auditor's opinion on the financial statements cover the 'other information' for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the other information. The Other Financial Information on pages 26 and 27 is presented for purposes of additional analysis but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the auditor's opinion does not extend to the 'other information' presented. Specifically, the auditor's report clarifies that while management is responsible for the 'other information,' which includes additional analysis on pages 26 and 27, this information is separate from the financial statements and the auditor's report itself.
This means that the auditor, Ernst & Young LLP, only provides assurance on the accuracy and fairness of the consolidated financial statements, which include the balance sheets, statements of operations, changes in partners' deficit, and cash flows. The 'other information' is not subjected to the same level of scrutiny and verification as the core financial statements. Therefore, prospective Camp Margaritaville franchisees should be aware that the additional analysis presented is not covered by the auditor's opinion.
For a potential franchisee, this distinction is crucial because it highlights that the 'other information' should be viewed with a degree of caution. While this information may offer additional insights, it has not been independently verified by the auditor. It is common practice for auditors to limit their opinion to the core financial statements, as the scope of an audit is typically defined by these statements. Franchisees should consider this when evaluating the overall financial health and performance of Camp Margaritaville.
Therefore, it is advisable for prospective franchisees to conduct their own due diligence and possibly seek independent financial advice to assess the reliability and implications of the 'other information' provided in the FDD. This may involve further investigation or analysis to ensure a comprehensive understanding of Camp Margaritaville's financial position.