What years are covered by the audited financial statements for Chocolate Bash included in Exhibit D?
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 audited financial statements in Exhibit D cover the years ending December 31, 2023, December 31, 2022, and December 31, 2021. Because Chocolate Bash has not been in business for at least three years, the document states that they cannot include all financial statements required by the Franchise Rule of the Federal Trade Commission.
These financial statements are crucial for prospective franchisees as they provide an overview of Chocolate Bash's financial performance over the past three years. This information can help potential franchisees assess the financial stability and profitability of the franchisor.
The inclusion of these audited financial statements demonstrates Chocolate Bash's commitment to transparency and compliance with regulatory requirements. A prospective franchisee should carefully review these statements, along with the accompanying notes and audit report, to gain a comprehensive understanding of the franchisor's financial health and identify any potential risks or opportunities.