Where can I find the financial statements for Chocolate Fish Coffee?

According to the 2024 Franchise Disclosure Document, Chocolate Fish Coffee's financial statements, along with accompanying notes and the Independent Accountant's Audit Report, are included in Item 21. The FDD includes Chocolate Fish Coffee's balance sheet as of December 31, 2023. The auditor, Omar Alnuaimi, CPA, from Naperville, IL, issued the audit report on March 1, 2024.

Because Chocolate Fish Coffee has not been in business for three years or more, the FDD does not include all financial statements typically required by the Franchise Rule of the Federal Trade Commission. However, Exhibit D contains Chocolate Fish Coffee's audited opening balance sheet dated December 31, 2023. The fiscal year end for Chocolate Fish Coffee is December 31.

The financial statements have been prepared following accounting principles generally accepted in the United States of America (US GAAP). These statements include estimates and assumptions made by the management that could affect the reported amounts of assets, liabilities, revenues, and expenses. Revenues are primarily derived from franchise fees, both one-time and recurring monthly fees, and are recognized when persuasive evidence of an arrangement exists, delivery has occurred, or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectability is reasonably assured.

Prospective franchisees should carefully review the provided financial statements and consult with a financial advisor to understand Chocolate Fish Coffee's financial performance and stability. Given the limited operating history, it is particularly important to assess the assumptions and estimates used in the financial statements and to consider the potential impact of these factors on the franchise's future financial results.