Does the auditor express an opinion on the effectiveness of Card My Yard's internal control?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
LLC. The sellers can earn additional cash consideration up to $5,605,000 if certain sales metrics are met within the 36-month period after closing.
FS PEP HOLDCO, LLC and SUBSIDIARIES
Consolidated Financial Statements As of December 31, 2024 and 2023 and For the Years Then Ended
Together with Independent Auditors' Report
Independent Auditors' Report
To the Board of Managers of FS PEP Holdco, LLC
Opinion
We have audited the accompanying consolidated financial statements of FS PEP Holdco, LLC and subsidiaries (collectively,the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, members' equity, and cash flows for the years then ended, and the related notes to consolidated financialstatements.
Inour opinion,the consolidated financialstatementsreferred toabove presentfairly,in allmaterialrespects, the financial position of FSPEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023, and the results oftheir operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the UnitedStates of America.
Due to the March 2024 acquisition of an entity under common control, CMY Holdco, LLC (Note 2), the historical activity prior to the acquisition of CMY Holdco, LLC and its wholly-owned subsidiary, Card my Yard Franchising, LLC, have been retrospectively combined in the consolidated fi
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 FDD, the independent auditor's report for Card My Yard does not explicitly state an opinion on the effectiveness of the company's internal control. The report focuses on the fairness of the presentation of the consolidated financial statements.
The auditor states that the consolidated financial statements of FS PEP Holdco, LLC and subsidiaries, which include the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, members' equity, and cash flows for the years then ended, present fairly the financial position of FS PEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023. This opinion is in accordance with accounting principles generally accepted in the United States of America.
However, the auditor mentions a March 2024 acquisition of CMY Holdco, LLC, noting that they did not audit the 2023 financial statements of Card my Yard Franchising, LLC, which reflect total assets of $10,040,671 and total revenues of $3,521,565. The auditor's opinion on these amounts is based solely on the report of other auditors. This indicates a reliance on another auditor's work for a portion of the consolidated financial statements. Prospective franchisees should be aware that the audit report expresses an opinion on the consolidated financial statements and not specifically on the internal controls of Card My Yard.