What is the date of the Goldmember, LLC notes to financial statements related to Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
GOLDMEMBER, LLC NOTES TO FINANCIAL STATEMENTS MAY 15, 2024
NOTE A - ORGANIZATION AND NATURE OF ACTIVITIES
GOLDMEMBER, LLC (the "Company") was incorporated under the laws of the State of Idaho for the purpose of offering franchise opportunities to entrepreneurs who want to own their own 'Crown Gold Exchange' location, as a franchise.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As a result, the Company records revenue when earned and expenses when incurred. The Company has adopted the calendar year as its basis of reporting.
Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities and other items, as well as the reported revenues and expenses. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and any cash equivalents include all cash balances, and highly liquid investments with maturities of three months or less when purchased.
Revenue Recognition
Revenues are primarily derived from franchise fees (one-time and recurring monthly fees). In accordance with Accounting Standards Codification (ASC) Topic 606, Revenue will be recognized when persuasive evidence of an arrangement exists, delivery has occurred, or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectability is reasonable assured. The determination of whether fees and fixed or determinable and collection is reasonable assured involves the use of assumptions. Arrangement terms and customer information are evaluated to ensure that these criteria are met prior to recognition of revenue.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the Goldmember, LLC notes to financial statements are dated May 15, 2024. These notes are an integral part of the financial statements, providing additional information and explanations regarding the figures presented in the balance sheets, income statements, and cash flow statements.
The notes cover various aspects of Goldmember, LLC's financial activities, including its organization, accounting policies, and potential risks. For instance, Note A clarifies that Goldmember, LLC was formed in Idaho to offer Crown Gold Exchange franchise opportunities. Note B outlines the company's accounting principles, such as revenue recognition and the use of estimates. Note C addresses potential concentrations of risk related to cash and cash equivalents, while Note D discusses subsequent events evaluated by management through May 31, 2024.
Prospective Crown Gold Exchange franchisees should carefully review these notes to gain a deeper understanding of the franchisor's financial position and accounting practices. Understanding these notes can help franchisees assess the financial health and stability of Crown Gold Exchange, which is crucial for making an informed investment decision. The notes also provide insights into how the company recognizes revenue from franchise fees and manages financial risks, which can impact the franchisee's relationship with the franchisor.