Are the financial statements for Chem Dry's parent company, BFG Holdings, Inc., audited?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached to this Franchise Disclosure Document in Exhibit G are the fiscal year end audited financial statements of BFG Holdings, Inc., our parent company, for the years 2021, 2022, and 2023. Our parent BFG Holdco, Inc. guarantees our performance to franchisees under the franchise agreements. A copy of the Guaranty of Performance is also included in Exhibit G. The fiscal year of BFG Holdco, Inc. ends December 31.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 68)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the fiscal year-end financial statements of Chem-Dry's parent company, BFG Holdings, Inc., are indeed audited. These audited financial statements for the years 2021, 2022, and 2023 are included as Exhibit G to the FDD.
This is a standard practice in franchising, as audited financial statements provide an independent assessment of the parent company's financial health. This is particularly important because BFG Holdco, Inc. guarantees Chem-Dry's performance to franchisees under the franchise agreements. A copy of the Guaranty of Performance is included in Exhibit G.
The inclusion of audited financial statements allows prospective Chem-Dry franchisees to review the financial stability and performance of the parent company, BFG Holdings, Inc. before investing in a franchise. This helps potential franchisees assess the level of risk associated with the franchise and make informed decisions.