Are the Deer Solution financial statements prepared in accordance with GAAP?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
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In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deer Solution Franchising, LLC as of December 31, 2022, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
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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 54)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the company's financial statements are prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America. This is explicitly stated in the summary of significant accounting policies within the notes to the financial statements. Specifically, the FDD includes independent auditor's reports that state the financial statements present fairly the financial position, results of operations, and cash flows of Deer Solution Franchising, LLC in accordance with GAAP.
For a prospective Deer Solution franchisee, this means the financial statements have been prepared using a standardized set of accounting rules, making them more reliable and easier to compare with other companies' financial statements. GAAP compliance enhances the credibility of the financial information provided in the FDD, which is essential for making informed investment decisions.
Furthermore, the independent auditor's report indicates that an audit was conducted in accordance with generally accepted auditing standards. This provides an additional level of assurance that the financial statements are fairly presented and free from material misstatements. The auditor's opinion confirms that they have evaluated the appropriateness of accounting policies and the reasonableness of significant estimates made by management.
Overall, the adherence to GAAP and the presence of an independent auditor's report are positive indicators for potential franchisees, suggesting that Deer Solution maintains a transparent and reliable financial reporting system. This allows franchisees to have greater confidence in the financial information provided by the franchisor.