How does the Deer Solution Statement of Cash Flows relate to the other financial statements provided in the FDD?

According to Deer Solution's 2025 Franchise Disclosure Document, the Statement of Cash Flows is one of the core financial statements that provides a comprehensive view of the company's financial health. The independent auditor's report indicates that the audit encompassed the balance sheets, statements of operations, members' equity (deficit), and cash flows. This means the Statement of Cash Flows is prepared and presented alongside these other statements to give a complete picture of Deer Solution's financial performance and position.

The auditor's opinion confirms that the financial statements, including the Statement of Cash Flows, present fairly the financial position, results of operations, and cash flows of Deer Solution Franchising, LLC, for the years ended December 31, 2024 and 2023. This opinion is based on audits conducted in accordance with generally accepted auditing standards, reinforcing the reliability and accuracy of the Statement of Cash Flows. The notes accompanying the financial statements are integral to understanding the Statement of Cash Flows, providing additional details and explanations of the figures presented.

For a prospective Deer Solution franchisee, this means the Statement of Cash Flows should be analyzed in conjunction with the balance sheet and statements of operations and members' equity to gain a thorough understanding of the franchisor's financial stability and performance. The Statement of Cash Flows specifically shows how Deer Solution generates and uses cash, which is crucial for assessing its ability to support franchisees and manage its own operations. Understanding the relationship between these statements is vital for making an informed investment decision.