What is the relevance of Cordova's establishment date to the financial statements?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchise Disclosure Document Exhibit D – Financial Statements
THESE FINANCIAL STATEMENTS ARE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM.
CORDOVA FRANCHISING, LLC
BALANCE SHEET- CASH BASIS
March 7, 2025 (Unaudited)
ASSETS:
Current Assets:
Cash 10,000
**Total Curre
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the balance sheet provided is dated March 7, 2025. This date is important because it represents a snapshot of Cordova Franchising, LLC's financial position at a specific point in time. The balance sheet shows the company's assets, liabilities, and equity as of that date.
The balance sheet indicates that Cordova's total assets amounted to $10,000, comprised entirely of cash. The company reported no liabilities. The equity section shows capital stock of $1,000 and owner's equity of $9,000, totaling $10,000, which balances with the total assets.
Because the financial statement is dated March 7, 2025, a prospective franchisee can understand the financial status of Cordova Franchising, LLC close to the FDD issuance date of May 30, 2025. However, the FDD also explicitly states that these financial statements are unaudited, meaning they have not been independently verified by a Certified Public Accountant. Therefore, prospective franchisees should exercise caution and consider this when evaluating Cordova's financial stability.