What is the purpose of the Report of Independent Auditors included in the Crave FDD?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
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.
Auditors' Responsibilities for the Audit of the Financial Statements
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Report of Independent Auditors provides an opinion on the fairness and accuracy of Crave Franchising, LLC's financial statements. The auditors state they have audited the balance sheets as of December 31, 2024, 2023, and 2022, along with the statements of operations, member's equity, and cash flows for the year ended December 31, 2024. Their opinion confirms whether these financial statements present fairly the company's financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America.
The report indicates that the audit was conducted following generally accepted auditing standards (GAAS), requiring the auditors to be independent and meet ethical responsibilities. The auditors believe they have obtained sufficient evidence to support their opinion. The report also outlines management's responsibilities for preparing the financial statements, including internal controls and assessing the company's ability to continue as a going concern for one year after March 24, 2025.
The auditors' responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing a report that includes their opinion. They exercise professional judgment, assess risks, and evaluate accounting policies and estimates. The auditors also consider whether there are conditions that raise substantial doubt about the company's ability to continue as a going concern. This independent audit provides potential franchisees with an unbiased assessment of Crave's financial health and stability.
In summary, the Report of Independent Auditors serves to give prospective Crave franchisees confidence in the financial information provided in the FDD. It confirms that an independent firm has reviewed Crave's financial statements and believes they are presented fairly and accurately. This is a standard practice in franchising, as it provides transparency and helps potential franchisees make informed decisions about investing in the franchise.