Are there any disclaimers related to the Chop5 Salad Kitchen financial statements?
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.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of CHOP5 Franchise LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about CHOP5 Franchise LLC's ability to continue as a going concern for one year after the date that the financial statements are issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the Independent Auditor's Report includes several statements regarding the responsibilities of both the management and the auditor in preparing and auditing the company's financial statements. The report states that the financial statements present fairly 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.
The report emphasizes that management is responsible for the preparation and fair presentation of the financial statements, including the implementation and maintenance of internal controls. Management must also evaluate whether there are conditions or events that raise substantial doubt about Chop5 Salad Kitchen's ability to continue as a going concern for one year after the financial statements are issued. The auditor's responsibility is to conduct audits in accordance with auditing standards generally accepted in the United States of America and to provide an opinion on the financial statements based on the audit evidence obtained.
These statements are standard disclaimers and clarifications included in an independent auditor's report to ensure transparency and delineate the responsibilities of both management and the auditor. Prospective franchisees should understand that the auditor's opinion is based on the information provided and the auditing standards followed, and it represents an assessment of the fairness of the financial statements. It is important for franchisees to review the entire financial statements and notes, along with the auditor's report, to gain a comprehensive understanding of Chop5 Salad Kitchen's financial condition.