What accounting principles were used in the preparation of the Crave Cookies Franchising, LLC financial statements, according to the opinion?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
e, members' equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Crave Cookies Franchising, LLC as of December 31, 2024 and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits 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 Crave Cookies Franchising, LLC, and to meet our other 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 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the financial statements were prepared following accounting principles generally accepted in the United States of America. This adherence to GAAP ensures that the financial statements present the company's financial position, results of operations, and cash flows fairly and in all material respects.
The independent auditor's report explicitly states that their opinion is based on audits conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). This indicates that the audit process itself followed a standardized and recognized set of procedures and guidelines. Management is responsible for preparing the financial statements in accordance with accounting principles generally accepted in the United States of America.
For a prospective Crave Cookies franchisee, this means the financial data has been prepared and audited using well-established and consistent standards. This allows for more reliable comparisons against other franchise opportunities and provides a degree of confidence in the financial information presented. It is important to note that while GAAP provides a framework, management still makes estimates and assumptions that could affect the reported amounts.