What is the purpose of the statement of operations in the Crave Franchising, LLC financial statements?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
e 4 | | Statement of Changes in Equity | Page 5 | | Statement of Cash Flows | Page 6 | | Notes to the Financial Statements | Page 7 |
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the statement of operations is a key component of the company's financial statements. The independent auditor's report indicates that they audited Crave's financial statements, which include the balance sheet as of December 31, 2024, 2023, and 2022, the statement of operations, member's equity, and cash flows for the year ended December 31, 2024, along with related notes. The purpose of the statement of operations is to present fairly the results of Crave's operations.
The auditor's opinion confirms that the financial statements, including the statement of operations, present fairly Crave's financial position as of December 31, 2024, 2023, and 2022, and the results of its operations and cash flows for the year ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America. This statement provides insight into the company's revenues, expenses, and profitability over the specified periods.
For a prospective franchisee, the statement of operations is crucial for understanding Crave's financial performance. It offers transparency into how the company generates revenue, manages expenses such as advertising which totaled $50,375 in 2024, $99,102 in 2023, and $25,856 in 2022, and ultimately, whether it is operating profitably. Reviewing these statements over the three-year period can help a franchisee assess the financial stability and growth potential of Crave before making an investment decision.