Are prospective franchisees of Crisp & Green advised to be aware that the interim balance sheet has not been audited?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 21 FINANCIAL STATEMENTS
The audited financial statements for our fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021, are attached as Exhibit G to this disclosure document. Our fiscal year end is December 31. We are also attaching our interim balance sheet as of March 31, 2024. THE INTERIM BALANCE SHEET IS PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED HIS OR HER OPINION WITH REGARD TO THE CONTENT OR FORM.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, prospective franchisees should be aware that the interim balance sheet, as of March 31, 2024, has not been audited by a certified public accountant. The FDD explicitly states that the interim balance sheet was prepared without an audit.
This means that the financial information presented in the interim balance sheet has not been independently verified for accuracy or compliance with accounting standards. While the franchisor includes this statement, it is a standard practice to include both audited and unaudited financial statements in the FDD.
Prospective Crisp & Green franchisees should understand the implications of reviewing unaudited financial data. Since these figures have not been examined by an independent auditor, there is a greater risk of inaccuracies or misstatements. It is crucial for potential franchisees to carefully review the interim balance sheet, ask clarifying questions, and possibly seek advice from a financial professional to assess the financial health of Crisp & Green.