Are the financial statements for Card My Yard's parent company 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 financial statements of t
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, the parent company, are audited. The Independent Auditors' Report states that the auditors have audited 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 auditors' opinion is that the financial statements present fairly, in all material respects, the financial position of FS PEP Holdco, LLC, and its 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, the audit opinion has a limitation regarding 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. These statements were audited by other auditors, and the opinion on these amounts is based solely on the report of these other auditors. This is due to the March 2024 acquisition of CMY Holdco, LLC, under common control, which includes Card My Yard Franchising, LLC.