Does the Crave Cookies Statement of Cash Flows include a going concern opinion?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 within one year after the date that these financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 FDD, the independent auditor's reports for Crave Cookies' financial statements for the years 2021 through 2024 do not contain a going concern opinion. Instead, the reports outline management's responsibility to evaluate the company's ability to continue as a going concern for one year after the financial statements are issued.
The auditor's reports for each year (2021-2024) state that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Crave Cookies in accordance with accounting principles generally accepted in the United States of America. This indicates that the auditors did not identify any substantial doubt about Crave Cookies' ability to continue as a going concern during their audits.
While the auditor does not express concern about the company's ability to continue as a going concern, prospective franchisees should recognize that management is responsible for evaluating the company's ability to continue as a going concern. Franchisees may want to inquire about the factors that management considers when assessing the company's financial stability and long-term viability.