Why doesn't the Chocolate Bash FDD include all required financial statements?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| We have not been in business for three years or more, and therefore cannot include all | |
|---|---|
| financial statements required by the Franchise Rule of the Federal Trade Commission. Exhibit D | |
| contains our audited financial statements from 12/31/2023, 12/31/2022 and 12/31/2021. Our fiscal | |
| year end is December 31. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the company has not been in business long enough to provide all financial statements typically required. Specifically, Chocolate Bash has not been in business for three years or more. However, the FDD does include Chocolate Bash's audited financial statements from December 31, 2023, December 31, 2022, and December 31, 2021. The company's fiscal year ends on December 31.
These financial statements include the Balance Sheet as of December 31, 2023, December 31, 2022 and December 31, 2021, the related Profit & Loss Statements, the related Statements of Cashflows, the related Statements of Shareholders' Equity, and the related notes for the twelve-month periods then ended.
Prospective franchisees should carefully review these included financial statements and notes, paying close attention to Chocolate Bash's revenues, expenses, assets, and liabilities. Because a complete set of historical financials is not available, potential franchisees may want to conduct extra due diligence, such as speaking with existing franchisees and consulting with a financial advisor, to fully assess the financial viability of the Chocolate Bash franchise opportunity.