What responsibility does the auditor have regarding the 'other information' in the Camp Margaritaville FDD?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The Partners Margaritaville Holdings LLC
Opinion
We have audited the consolidated financial statements of Margaritaville Holdings LLC and its subsidiaries (collectively, the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in partners' deficit, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively referred to as the financial statements).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at 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 (GAAS). 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 audits. 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 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.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Report of Independent Auditors focuses on the consolidated financial statements of Margaritaville Holdings LLC and its subsidiaries. The auditor's responsibility is to audit these financial statements, which include the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in partners' deficit, and cash flows for the years then ended, along with the related notes. The auditor expresses an opinion on whether these financial statements present fairly the financial position, results of operations, and cash flows of the company in accordance with accounting principles generally accepted in the United States of America.
The auditor conducts the audit in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent and to meet ethical responsibilities. The auditor's report describes their responsibilities, including obtaining sufficient and appropriate audit evidence to provide a basis for their opinion. The document states that management is responsible for the preparation and fair presentation of the financial statements, 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, and evaluating 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.
Based on the excerpt, the auditor's responsibilities are specifically tied to the audited financial statements. The excerpt does not explicitly detail the auditor's responsibility, if any, regarding 'other information' that may be included in the Camp Margaritaville FDD beyond these financial statements. It is typical in franchise disclosure documents for auditors to focus primarily on the financial statements, with management taking responsibility for other sections. A prospective franchisee should confirm with Camp Margaritaville what the auditor's specific role is concerning any non-financial statement information provided in the FDD.