Does the Deer Solution FDD include a statement of changes in equity?
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.
E. Federal Income Taxes
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, the provided excerpts do not contain a specific statement of changes in equity. However, the document does include financial statements and notes. These notes are described as an integral part of the financial statements. The FDD includes the company's formation details, significant accounting policies, and the auditor's responsibilities. These elements provide context for understanding Deer Solution's financial standing.
While a statement of changes in equity isn't explicitly mentioned, the FDD does detail several key financial procedures and policies. These include the basis of accounting, handling of cash and cash equivalents, the brand development fund, and policies for accounts receivable and federal income taxes. This information is useful for assessing how Deer Solution manages its finances and provides transparency to potential franchisees.
Prospective franchisees should directly request a statement of changes in equity from Deer Solution to gain a clearer picture of the company's equity transactions over time. Understanding these changes is crucial for evaluating the financial health and stability of the franchisor. This information, combined with the provided financial statements and notes, will offer a more complete financial overview.