Why did Cd One Price Cleaners restate its 2022 financial results?

According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the company restated its 2022 financial statements due to errors related to accrued interest expense on installment notes payable with the United States Small Business Administration. This required an adjustment to members' equity as of December 30, 2022, to correct the error. The independent auditor's report indicates that their opinion on the financial statements is not modified with respect to this matter.

For a prospective franchisee, this means that Cd One Price Cleaners identified and corrected errors in its past financial reporting. While the error was significant enough to warrant a restatement, the auditor's opinion remained unchanged, suggesting that the restatement adequately addressed the issue and the financial statements still present a fair view of the company's financial position.

It is common for companies, including franchisors, to restate financial statements when material errors are discovered. The fact that Cd One Price Cleaners disclosed this restatement and the reason for it provides transparency to potential investors and franchisees. A prospective franchisee may want to inquire further about the specific nature and magnitude of the error to fully understand its impact, even though the auditor's opinion was not modified.