Are the Creative World School financial statements consolidated?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
April 4, 2025
To the Stockholders of Creative World Schools Franchising Company, Inc. Bonita Springs, Florida
Opinion
We have audited the accompanying financial statements of Creative World Schools Franchising Company, Inc. (the Company), which comprise the balance sheets as of December 31, 2024, 2023 and 2022, and the related statements of ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Creative World Schools Franchising Co., Inc., 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the financial statements provided are for Creative World Schools Franchising Company, Inc. The audit opinion from April 4, 2025, states that the auditors have audited the financial statements of Creative World Schools Franchising Company, Inc., which comprise the balance sheets as of December 31, 2024, 2023 and 2022, and the related statements of operations, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements. The opinion indicates that the financial statements present fairly the financial position of Creative World Schools Franchising Co., Inc. This suggests that the financial statements are for the franchising company itself and are not consolidated to include the financial results of its franchisees or affiliates.
The provided financial statements focus solely on Creative World Schools Franchising Company, Inc., and do not incorporate the financial data from individual franchised locations or company-owned schools. This is a common practice in franchising, where the franchisor's financial performance is reported separately from the financial performance of its franchisees. Item 19 includes historical average income and expenses for certain company-owned and franchised schools, but this is presented separately from the franchisor's financial statements.
Prospective franchisees should be aware that the financial statements presented in the FDD reflect the financial health and performance of the Creative World School franchising entity, not the potential profitability or financial results of an individual franchise location. To gain insight into the potential financial performance of a Creative World School franchise, candidates should carefully review Item 19, which provides historical average income and expenses for certain company-owned and franchised schools, and consider conducting their own independent financial analysis and due diligence.