What are the responsibilities of management in relation to the Crave Franchising, LLC financial statements?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, management holds specific responsibilities regarding the company's financial statements. These responsibilities include the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. This encompasses the design, implementation, and maintenance of internal controls relevant to ensuring the financial statements are free from material misstatements, whether due to fraud or error.
Crave's management is also required to evaluate whether conditions or events, considered in the aggregate, raise substantial doubt about the company's ability to continue as a going concern for one year after March 24, 2025. This assessment is crucial for stakeholders to understand the company's financial stability and future prospects.
In simpler terms, Crave's management is accountable for ensuring the accuracy and reliability of the financial statements. They must establish and maintain internal controls to prevent errors or fraud and must also assess the company's ability to continue operating in the foreseeable future. This ensures that potential franchisees and other stakeholders have a clear and accurate picture of the company's financial health.