What must be concluded regarding Cream's ability to continue as a going concern?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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Independent Auditor's Report
To the Member Jeni's Splendid Ice Creams Franchise, LLC
Opinion
We have audited the financial statement of Jeni's Splendid Ice Creams Franchise, LLC (the "Company"), which comprises the balance sheet as of May 29, 2025, and the related notes to the financial statement.
In our opinion, the accompanying financial statement presents fairly, in all material respects, the financial position of the Company as of May 29, 2025 in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit 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 Statement section of our report. We are required to be independent of the Company and to meet our ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statement
Management is responsible for the preparation and fair presentation of the financial statement in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of a financial statement that is free from material misstatement, whether due to fraud or error.
In preparing the financial statement, 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 the financial statement is issued or available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, an independent auditor has reviewed the financial statements of Jeni's Splendid Ice Creams Franchise, LLC (referred to as "the Company" in the audit report). The auditor's report, dated May 29, 2025, expresses an opinion on the company's financial position.
The auditor's opinion states that the financial statement presents fairly, in all material respects, the financial position of Cream as of May 29, 2025, in accordance with accounting principles generally accepted in the United States of America. This indicates that the auditor believes the financial statements are presented accurately and in compliance with established accounting standards.
Furthermore, the management of Cream is responsible for evaluating whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the financial statement is issued. The fact that the auditor issued an unqualified opinion suggests that, based on their audit, there is no substantial doubt about Cream's ability to continue as a going concern. However, this conclusion is based solely on the information available to the auditor as of the audit date.