What is the significance of the auditor being independent of Crave Franchising, LLC?
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.
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 is included in the financial statements. The auditor's independence is crucial for ensuring the credibility and reliability of Crave's financial statements.
The FDD states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), which require the auditors to be independent of the company and to meet ethical responsibilities. This independence signifies that the auditors have no financial or personal ties to Crave that could compromise their objectivity. This helps ensure that the audit is unbiased and that the financial statements present a fair view of Crave's financial position.
The auditor's opinion confirms that the financial statements of Crave fairly represent its financial position 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. This opinion is based on the audit evidence obtained, which the auditors believe is sufficient and appropriate. For a prospective franchisee, this independent audit provides a level of assurance that the financial information provided by Crave is reliable and has been thoroughly examined by an impartial third party.
In essence, the independence of the auditor is a safeguard for potential franchisees, assuring them that the financial information they are relying on to make their investment decision has been vetted by an unbiased professional. This is a standard practice in franchising, as it promotes transparency and trust between the franchisor and its franchisees.