Why doesn't Cordova have three years of audited financial statements?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit D is our unaudited opening balance sheet. We were established on February 6, 2025 and our fiscal year ends on December 31. Because we have not been franchising for three years or more, we do not have three years of audited financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the company does not have three years of audited financial statements because they have not been franchising for three years or more. The FDD states that Cordova was established on February 6, 2025, and their fiscal year ends on December 31.
This is a common situation for newer franchises. Franchises are required to provide audited financial statements for the past three years if they have been in operation that long. Since Cordova is a relatively new franchise, they are only providing an unaudited opening balance sheet as Exhibit D.
Prospective franchisees should be aware that the financial statements provided are unaudited and only represent a snapshot of the company's financial position at its inception. It is important to carefully review these statements and consider seeking professional financial advice to fully understand the financial health and stability of Cordova before investing in a franchise.