Does the Crawl Space Ninja financial statement include a statement of operations?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
We have audited the financial statements of Crawlspace Ninja Franchising LLC (a Tennessee limited liability company), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of operations, changes in member's equity (deficit) and cash flows for the years ended December 31, 2023, 2022 and 2021, and related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations, changes in member's equity (deficit) and cash flows for the years ended December 31, 2023, 2022 and 2021 in conformity with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, the financial statements include a statement of operations. Specifically, the independent auditor's report states that the audit encompassed the balance sheets as of December 31, 2023, and 2022, and the related statements of operations, changes in member's equity (deficit), and cash flows for the years ended December 31, 2023, 2022, and 2021. This indicates that a statement of operations is a component of the audited financial statements.
The inclusion of a statement of operations is standard practice for financial reporting. It provides a summary of revenues, costs, and expenses, and ultimately, the net profit or loss of Crawl Space Ninja Franchising LLC over a specific period. For a prospective franchisee, this statement is crucial for understanding the franchisor's financial performance and profitability trends.
The auditor's opinion confirms that these financial statements present fairly the financial position, results of operations, changes in equity, and cash flows of Crawl Space Ninja in conformity with accounting principles generally accepted in the United States of America. This adds credibility to the financial information provided, assuring potential franchisees that the data has been reviewed by an independent expert.