Does this table indicate if the receipts for Cinch I.T. are audited or unaudited?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
INDEPENDENT AUDITORS' REPORT
To the Member of Cinch Franchise, LLC Worcester, Massachusetts
Opinion
We have audited the accompanying financial statements of Cinch Franchise, LLC (an S-Corporation), which comprise the balance sheets as of December 31, 2022 and 2021, and the related statements of operations and member's equity (deficit) and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Cinch Franchise, LLC as of December 31, 2022 and 2021, and the results of its operations and 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. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Cinch 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.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, the financial statements of Cinch Franchise, LLC, which would include receipts, have been audited by an independent auditor. Specifically, the document includes an "INDEPENDENT AUDITORS' REPORT" that covers the balance sheets, statements of operations, member's equity (deficit), and cash flows for multiple years.
The presence of an independent auditor's report indicates that a certified public accounting firm has examined Cinch I.T.'s financial statements in accordance with generally accepted auditing standards. This audit provides an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Cinch Franchise, LLC in conformity with accounting principles generally accepted in the United States of America.
For a potential Cinch I.T. franchisee, this suggests a degree of financial transparency and accountability from the franchisor. The audit report gives more assurance than unaudited statements because an independent third party has verified the figures. Franchisees may want to review these audited financial statements and the accompanying notes to assess the financial health and stability of Cinch I.T. before investing in a franchise.