Is the auditing firm required to be independent of City Publications Franchise Group, Inc.?

According to City Publications' 2025 Franchise Disclosure Document, the auditing firm is required to be independent of City Publications Franchise Group, Inc. The independent auditor's report states that the audits were conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). As part of these standards, the auditing firm is required to be independent of City Publications and to meet other ethical responsibilities in accordance with relevant ethical requirements. The auditor's report also mentions that the audit evidence obtained is considered sufficient and appropriate to provide a basis for their audit opinion.

This requirement ensures that the financial statements of City Publications are audited with objectivity and impartiality. Independence is crucial for maintaining the credibility of the audit and providing assurance to potential franchisees that the financial information presented by City Publications is reliable. Without independence, there could be a conflict of interest that could compromise the integrity of the audit process.

For a prospective City Publications franchisee, this provides a level of confidence in the financial health and reporting practices of the franchisor. Knowing that an independent firm has reviewed the financial statements and has confirmed their accuracy and fairness can be an important factor in making an informed investment decision. This also aligns with standard practices in the franchise industry, where audited financial statements are a common requirement to ensure transparency and protect the interests of franchisees.