Where can I find Chocolate Bash's audited 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 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the audited financial statements can be found in Exhibit D. Because Chocolate Bash has not been in business for at least three years, the FDD does not include all financial statements required by the Franchise Rule of the Federal Trade Commission. Exhibit D contains 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.
This is a standard practice for newer franchisors. The FTC requires a certain level of financial disclosure to ensure potential franchisees can assess the financial stability of the franchisor. The inclusion of audited financial statements for the past three years helps prospective franchisees evaluate the financial health and performance of Chocolate Bash.
As Chocolate Bash continues to operate and file FDD updates, future FDDs will likely include a more comprehensive set of financial statements as the company meets the three-year operating history requirement. For now, reviewing the provided audited statements from 2021, 2022, and 2023 is crucial for any potential franchisee to understand the financial standing of Chocolate Bash.