During the audit of Chick Fil A's consolidated financial statements, is an opinion expressed on the effectiveness of the company's internal control?

According to Chick Fil A's 2025 Franchise Disclosure Document, the independent auditors do not express an opinion on the effectiveness of the company's internal control. While the auditors obtain an understanding of internal control relevant to the audit to design appropriate procedures, this is not for the purpose of expressing an opinion on the effectiveness of Chick Fil A's internal control. The audit focuses on whether the consolidated financial statements are free from material misstatement.

This means that the audit is designed to provide reasonable assurance that the financial statements are presented fairly, but it does not specifically evaluate the strength or effectiveness of Chick Fil A's internal controls over financial reporting. The auditors' responsibilities include identifying and assessing the risks of material misstatement, examining evidence regarding amounts and disclosures, and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates.

For a prospective franchisee, this indicates that the financial statements have been reviewed by independent auditors, but there is no separate opinion on the effectiveness of Chick Fil A's internal controls. This is a common practice in many audits, where the focus is primarily on the fairness of the financial statements rather than a comprehensive assessment of internal controls. Franchisees may want to inquire further about Chick Fil A's internal control environment and processes as part of their due diligence.