Does the auditor express an opinion on the effectiveness of Cinnaholic Franchising, LLC's internal control?

According to Cinnaholic's 2025 Franchise Disclosure Document, the independent auditor, Muhammad Zubairy, CPA PC, does not express an opinion on the effectiveness of Cinnaholic Franchising, LLC's internal control. While the auditor obtains an understanding of internal control relevant to the audit to design appropriate audit procedures, this is not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

This means that the audit focuses on the financial statements themselves, ensuring they are free from material misstatement, rather than evaluating the systems and processes Cinnaholic has in place to manage its finances. The auditor's responsibility is to provide an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Cinnaholic in accordance with accounting principles generally accepted in the United States of America.

For a prospective franchisee, this highlights the importance of conducting their own due diligence regarding Cinnaholic's internal controls and financial management practices. While the financial statements are audited, the absence of an opinion on internal control means there is no independent assessment of the systems in place to prevent errors or fraud.

Therefore, a potential Cinnaholic franchisee may want to ask the franchisor about their internal control policies and procedures, and possibly seek advice from a financial professional to evaluate the financial risks and stability of the franchise opportunity.