Are the financial statements for Crisp & Green included in the FDD audited?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
INDEPENDENT AUDITORS' REPORT
Member Crisp & Green Franchising LLC Wayzata, Minnesota
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Crisp & Green Franchising LLC, which comprise the balance sheets as of December 31, 2023, 2022, and 2021 and the related statements of operations, member's equity, and cash flows for the years then 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 Crisp & Green Franchising LLC as of December 31, 2023, 2022, and 2021, 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 (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Crisp & Green Franchising LLC and to meet our other ethical responsibilities in accordance 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the financial statements included in the document have been audited by an independent auditor. Specifically, the financial statements of Crisp & Green Franchising LLC, which comprise the balance sheets as of December 31, 2023, 2022, and 2021, and the related statements of operations, member's equity, and cash flows for the years then ended, including the related notes, were audited.
The Independent Auditor's Report states that the financial statements present fairly the financial position of Crisp & Green Franchising LLC as of December 31, 2023, 2022, and 2021, 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. This opinion from CliftonLarsonAllen LLP indicates that the auditors believe the financial statements are presented accurately and in compliance with established accounting standards.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditors to be independent and to meet ethical responsibilities. The auditors' responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. Management is responsible for the preparation and fair presentation of the financial statements and for maintaining internal control relevant to the preparation of the financial statements.
An independent audit provides a potential Crisp & Green franchisee with a higher level of confidence in the accuracy and reliability of the financial information presented. The inclusion of audited financial statements is a standard practice in franchising, as it offers transparency and helps prospective franchisees make informed investment decisions. The auditors have also agreed to the inclusion of their report in the Franchise Disclosure Document, reinforcing their responsibility for the audit opinion.