What judgment should be exercised throughout the audit of Card My Yard's financial statements?
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 Card My Yard's 2025 Franchise Disclosure Document, the independent auditor's report states that the consolidated financial statements of FS PEP Holdco, LLC and subsidiaries should be assessed to ensure they present fairly, in all material respects, the financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America. This indicates that the audit aims to provide a reliable and unbiased view of the company's financial health.
The audit covers the consolidated balance sheets as of December 31, 2024 and 2023, along with the consolidated statements of operations, members' equity, and cash flows for the years then ended. This comprehensive review ensures that all key financial aspects of the business are examined and verified.
It is important to note that the 2023 financial statements of Card My Yard Franchising, LLC, with total assets of $10,040,671 and total revenues of $3,521,565, were audited by other auditors. The current auditor's opinion, insofar as it relates to these amounts, is based solely on the report of these other auditors. This highlights the reliance on external audits for specific components of the overall financial picture.