Does the audit of Crave Cookies include expressing an opinion on the effectiveness of the company's internal control?

According to Crave Cookies' 2025 Franchise Disclosure Document, the audit performed does not include an opinion on the effectiveness of the company's internal control. While the auditors gain an understanding of internal controls relevant to the audit, it is solely to design appropriate audit procedures and not to provide assurance on the effectiveness of those controls.

This means that the independent auditor, in examining Crave Cookies' financial statements, focuses on whether the statements are free from material misstatement. Their procedures are designed to assess the risk of misstatement and to gather sufficient evidence to support their opinion on the fairness of the financial statements. However, they do not specifically evaluate whether Crave Cookies' internal controls are well-designed or operating effectively.

For a prospective franchisee, this implies that the audit report provides assurance on the accuracy of the financial statements but does not offer any guarantee about the strength of Crave Cookies' internal controls. A franchisee may want to independently assess the franchisor's internal controls or seek additional information about their risk management practices to gain a more complete understanding of the company's financial health and stability.