Are the financial statements of Chop5 Salad Kitchen for CHOP5 Franchise LLC or another entity?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
Independent Auditor's Report
To the Member CHOP5 Franchise LLC Louisville, Kentucky
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of CHOP5 Franchise LLC as of December 31, 2023, and 2022 and the related statements of operations, member equity and cash flows for the years ended December 31, 2023, 2022, and 2021, and the notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CHOP5 Franchise LLC as of December 31, 2023, and 2022 and the results of their operations and their cash flows for the years ended December 31, 2023, 2022, and 2021 in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the financial statements provided are for CHOP5 Franchise LLC. The Independent Auditor's Report explicitly states that the audit was conducted on the balance sheets of CHOP5 Franchise LLC as of December 31, 2023, and 2022, and the related statements of operations, member equity, and cash flows for the years ended December 31, 2023, 2022, and 2021. The auditor's opinion confirms that the financial statements fairly present the financial position of CHOP5 Franchise LLC.
CHOP5 Franchise LLC was formed in Kentucky on March 22, 2019. The company grants franchises to qualified individuals for the establishment and operation of Chop5 Salad Kitchen restaurants. Chop5 Franchise LLC is wholly owned by Chop5 LLC, which was organized in Kentucky on February 18, 2016. Other affiliates include Chop5 Polaris LLC, CHOP5 IP LLC, Chop5 Orlando UCF, LLC, and Chop5 JV Boulder LLC.
For a prospective franchisee, this means the financial performance represented in the FDD reflects the franchisor entity, CHOP5 Franchise LLC, specifically. Understanding the franchisor's financial health is crucial for assessing the stability and support a franchisee can expect. It is important to review these statements carefully and possibly consult with a financial advisor to fully understand the financial obligations and potential risks associated with investing in a Chop5 Salad Kitchen franchise.