Are there any disclaimers related to the Cinch I.T. financial statements in Exhibit B?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
From Street, 16th Floor Wordester, MA 01608 Tel. (508) 757-3311 Fax: (508) 752-3577
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.
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 60)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the financial statements in Exhibit B are accompanied by an Independent Auditor's Report. This report includes an opinion from the independent auditors stating that the financial statements present 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.
The report also outlines the responsibilities of both the management of Cinch I.T. and the auditors. Management is responsible for the preparation and fair presentation of the financial statements, as well as maintaining internal controls relevant to the preparation of accurate financial statements. The auditors' responsibility is to conduct audits in accordance with auditing standards generally accepted in the United States of America, ensuring they are independent and meet ethical requirements. The auditors also state that they believe the audit evidence they obtained is sufficient and appropriate to provide a basis for their audit opinion.
This type of report is standard practice for franchisors and provides a level of assurance to potential franchisees that the financial statements have been reviewed by an independent party. A prospective Cinch I.T. franchisee should carefully review the financial statements and the auditor's opinion, and if they do not understand the statements, they should seek advice from a financial professional.