Were the financial reports submitted by Caring Transitions franchisees audited or independently verified by the franchisor?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Presented below are historic gross revenue and gross profit percentage figures for certain Caring Transitions franchises for the one-year periods ending December 31, 2021, December 31, 2022, December 31, 2023, and December 31, 2024. The data is presented by quartile and then cumulatively. Only data from franchises that were open for the entire year are included in the table. The information has been extracted from financial reports submitted to us by our franchisees. The financial reports submitted to us were prepared by the franchisee in most cases, not reviewed or audited by an independent accountant. We have not audited or independently verified this information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–41)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the financial reports submitted by franchisees were generally not reviewed or audited by an independent accountant, nor were they independently verified by Caring Transitions. The financial performance representations provided in Item 19 are based on data extracted from these reports. This data includes historic gross revenue and gross profit percentage figures for certain Caring Transitions franchises for the one-year periods ending December 31, 2021, December 31, 2022, December 31, 2023, and December 31, 2024.
This lack of independent verification means that the accuracy of the financial data depends on the franchisees' reporting. A prospective franchisee should be aware that the figures presented may not have been subjected to rigorous accounting standards or external validation. While Caring Transitions provides this data for informational purposes, it does not guarantee its accuracy.
Given that the financial data is self-reported and unaudited, it is crucial for potential franchisees to conduct their own due diligence. Caring Transitions strongly suggests consulting a financial advisor or accountant to review the financial performance representations and prepare independent financial projections. This will help in assessing the potential risks and rewards of investing in a Caring Transitions franchise.
The FDD emphasizes that there is no assurance a new franchisee will achieve the same financial results as existing franchisees. The document also states that written substantiation for the financial performance representation will be made available upon request.