Are the financial statements for Card My Yard audited?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 7 – Subsequent Event
Effective March 26, 2024, the Holding Company was acquired by FS PEP Holdco, LLC in exchange for equity interests in FS PEP Holdco, 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 21 — FINANCIAL STATEMENTS (FDD page 84)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the consolidated financial statements of FS PEP Holdco, LLC and subsidiaries, which include Card My Yard Franchising, LLC, are audited by independent auditors. The audit covers the consolidated balance sheets as of December 31, 2024, and 2023, along with the related consolidated statements of operations, members' equity, and cash flows for the years then ended. The independent auditors have provided an opinion that the financial statements present fairly, in all material respects, the financial position of FS PEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
However, it is noted that 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, were audited by other auditors. The independent auditor's opinion on the consolidated financial statements, insofar as it relates to the amounts included for Card My Yard Franchising, LLC as of December 31, 2023, and for the year then ended, is based solely on the report of these other auditors. This means that while the overall consolidated statements are audited, a portion of the data relies on the audit work of a different firm.
For a prospective franchisee, this indicates that Card My Yard provides audited financial statements, offering a degree of assurance regarding the accuracy and reliability of the financial information presented. However, it's important to recognize that the 2023 figures for Card My Yard Franchising, LLC, were audited by a different firm, and the primary auditor's opinion is based on their report. A potential franchisee might want to review the report from the other auditors to gain a comprehensive understanding of the financial data. This is a fairly common practice, especially when companies acquire other entities, and it's essential to consider the implications when evaluating the financial health of the franchise.