What does the audit of Crave Franchising, LLC's financial statements provide assurance about?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Member of Crave Franchising, LLC
Opinion
We have audited the accompanying financial statements of Crave Franchising, LLC, (the Company), a Wyoming limited liability company, which comprise Balance sheet as of December 31, 2024, 2023, and 2022, and the related statement of operations and member's equity and cash flows for the year ended December 31, 2024, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the year ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company 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 these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after March 24, 2025.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the audit of Crave Franchising, LLC's financial statements provides an opinion on whether the financial statements present fairly, in all material respects, the company's financial position as of December 31, 2024, 2023, and 2022. It also covers the results of its operations and its cash flows for the year ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America. This means that an independent auditor has reviewed Crave's financial records and believes they are presented accurately and in compliance with standard accounting practices.
The audit was conducted following generally accepted auditing standards (GAAS) in the United States. These standards require the auditors to be independent of the company and to meet ethical responsibilities. The auditors also believe that the audit evidence they obtained is sufficient and appropriate to provide a basis for their audit opinion. This gives potential franchisees some assurance that the financial information provided by Crave has been vetted by an independent third party and adheres to established accounting principles.
Management is responsible for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal controls. They are also required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for one year after March 24, 2025. This "going concern" assessment is a critical part of financial reporting, ensuring that companies disclose any significant risks to their long-term viability. The auditor's responsibility is to express an opinion on these financial statements based on their audit.