What years are covered by the audited financial statements for Cilantro Taco Grill included in Exhibit D?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
CTG Franchise LLC has not been in business for 3 years, therefore we are not able to include the 3 prior years of audited financial statements normally required by this Item 21. Our audited financial statements as of December 31, 2023 and December 31, 2022 are included in Exhibit D.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, because the company has not been in business for three years, the document includes audited financial statements for the two most recent years. Specifically, Exhibit D contains audited financial statements as of December 31, 2023, and December 31, 2022.
This is important for prospective franchisees because it provides a limited view into the financial history of the company. Typically, a longer financial history gives a better understanding of a company's performance over time. However, given that Cilantro Taco Grill is a relatively new franchisor, only two years of data are available.
Potential franchisees should carefully review these financial statements to assess the financial stability and performance of Cilantro Taco Grill. They should also consider the limited operating history when evaluating the franchise opportunity and consult with a financial advisor to fully understand the implications.