When auditing Cream, is an opinion expressed on the effectiveness of the company's internal control?

According to Cream's 2025 Franchise Disclosure Document, the auditor, Plante & Moran, PLLC, does not express an opinion on the effectiveness of the company's internal control. While the auditors obtain an understanding of internal control relevant to the audit to design appropriate procedures, the audit's purpose is not to express an opinion on the effectiveness of Cream's internal control.

This means that the audit focuses on the financial statements themselves, ensuring they are free from material misstatement, rather than evaluating the systems and processes Cream has in place to manage its finances. The auditor's responsibilities include exercising professional judgment, assessing risks of misstatement, examining evidence, evaluating accounting policies, and concluding on the company's ability to continue as a going concern.

For a prospective franchisee, this implies that the audit provides assurance on the accuracy of the financial statements presented. However, it does not offer any guarantee about the strength or effectiveness of Cream's internal controls. A potential franchisee may want to independently assess Cream's internal controls through due diligence or seek additional information from Cream regarding their risk management practices.