Does the Deer Solution FDD include an income statement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying notes are an integral part of the financial statements.
Deer Solution Franchising, LLC December 31, 2024 and 2023 Notes To Financial Statements
1. COMPANY AND NATURE OF OPERATIONS
Deer Solution Franchising, LLC (the Company) was established in the state of New Jersey on December 30, 2021, for the purpose of offering franchise opportunities to entrepreneurs who want to own and operate their own Deer Solution Business. Deer Solution is a home-based service franchise that helps property owners protect flowers and shrubs from deer damage with regular service applications. The Company offers individual unit franchises and area development franchises for the development of multiple units within a designated territory.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company's financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements.
A. Basis of Accounting
The Company's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
B. Cash and Cash Equivalents
For purposes of the Statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less to be cash equivalents.
C. Brand Development Fund
The Company collects funds from franchisees to manage the brand level advertising, marketing and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.
D. Accounts Receivable
Accounts receivable arise primarily from initial franchise fees, brand funds, management fees and royalties are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. The Company provides an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, existing economic conditions, and other relevant factors. Management has determined that no allowance for doubtful accounts was necessary on December 31, 2024 and 2023.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document (FDD) includes financial statements. Item 23 and its accompanying notes are an integral part of these financial statements. These statements are representations of Deer Solution's management and conform to generally accepted accounting principles. The FDD also discusses the auditor's responsibilities for auditing these financial statements, which include obtaining reasonable assurance that the statements are free from material misstatement.
While the FDD mentions financial statements and notes, it does not explicitly state that an income statement is included. The notes to the financial statements cover various aspects such as the company's nature of operations, accounting policies, cash and cash equivalents, brand development fund, accounts receivable, and federal income taxes. These notes provide context for understanding and evaluating Deer Solution's financial position and performance.
Although the presence of an income statement is not explicitly confirmed, the FDD's detailed discussion of financial statements and accounting policies suggests that standard financial reports, including an income statement, are likely part of the disclosed financial information. A prospective franchisee should carefully review Item 23 and the accompanying financial statements to determine if an income statement is included and to fully understand Deer Solution's financial performance and stability.