Are the Creative Colors financial statements audited?
Creative_Colors Franchise · 2025 FDDAnswer from 2025 FDD Document
Independent Auditors' Report
To the Board of Directors Creative Colors International, Inc. and Affiliate Mokena, Illinois
Opinion
We have audited the accompanying consolidated financial statements of Creative Colors International, Inc. and Affiliate which comprise the consolidated balance sheets as of December 31, 2024, 2023 and 2022 and the related consolidated statements of operations and retained earnings and cash flows for the years then ended and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Creative Colors International, Inc. and Affiliate, as of December 31, 2024, 2023 and 2022 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of Creative Colors International, Inc. and Affiliate and to meet our other ethical responsibilities in accordan e with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 68)
What This Means (2025 FDD)
According to Creative Colors' 2025 Franchise Disclosure Document, the company's financial statements are indeed audited. The FDD includes an Independent Auditors' Report, indicating that the consolidated financial statements of Creative Colors International, Inc. and Affiliate have been audited. This report covers the consolidated balance sheets as of December 31, 2024, 2023, and 2022, along with the related consolidated statements of operations and retained earnings, and cash flows for the years then ended.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America. The auditors stated that the financial statements present fairly, in all material respects, the financial position of Creative Colors International, Inc. and Affiliate as of the specified dates, and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
For a prospective franchisee, this is a positive sign, as it suggests that Creative Colors' financial records have been examined by an independent and qualified professional. This can provide a degree of confidence in the accuracy and reliability of the financial information presented in the FDD. Franchisees may want to review the full audited financial statements and notes to understand the company's financial health and performance over the past three years.