Are the financial statements for Churchs Chicken in the FDD audited or unaudited?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Ernst & Young LLP Suite 1000 55 Ivan Allen Jr. Boulevard Atlanta, GA 30308 Tel: +1 404 874 8300 Fax: +1 404 817 5589 ev.com
Report of Independent Auditors
The Board of Directors Cajun Global LLC and Subsidiaries
Opinion
We have audited the consolidated financial statements of Cajun Global LLC and Subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2023 and December 25, 2022, and the related consolidated statements of operations, changes in member's equity and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at years ended December 31, 2023 and December 25, 2022, and the results of its operations and its cash flows for the years then ended, 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 the Company 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 of 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 the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the consolidated financial statements of Cajun Global LLC and Subsidiaries, which include Churchs Chicken, have been audited by Ernst & Young LLP. The audit covers the consolidated balance sheets as of December 31, 2023, and December 25, 2022, as well as the related consolidated statements of operations, changes in member's equity, and cash flows for the years then ended. The audit also includes related notes to the financial statements.
The Report of Independent Auditors indicates that Ernst & Young LLP conducted the audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Their opinion is that the financial statements present fairly, in all material respects, the financial position of the Company as of the specified dates, and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
For a potential Churchs Chicken franchisee, this means that the financial information provided in the FDD has been examined by an independent accounting firm, adding a level of assurance regarding its accuracy and reliability. This is a standard practice in franchising, as audited financial statements provide more credibility compared to unaudited ones. Franchisees can review these audited statements to gain a better understanding of the financial health and performance of Churchs Chicken and its parent company.