Is the Chocolate Fish Coffee Brand Fund financial statement audited?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (f) Financial Statement. Chocolate Fish Franchising will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of Chocolate Fish Franchising's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the Brand Fund's financial statement is not audited. Chocolate Fish Franchising will prepare an annual financial statement within 120 days of the close of their fiscal year. This statement will then be provided to the franchisee upon request.
Because the financial statement is unaudited, there is no independent verification of the Brand Fund's financial activities. This means the franchisee must rely on Chocolate Fish Coffee's internal accounting for the fund's income and expenses.
While unaudited financial statements are less rigorous than audited ones, they are common in franchising, especially for smaller or newer systems. A prospective Chocolate Fish Coffee franchisee may want to inquire about the level of detail provided in the financial statement and the processes Chocolate Fish Coffee uses to ensure accuracy.