Are there notes to the financial statements included for Deer Solution?
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)
According to Deer Solution's 2025 Franchise Disclosure Document, the financial statements include accompanying notes. These notes are described as an integral part of the financial statements.
The notes to the financial statements for Deer Solution as of December 31, 2024 and 2023, include information about the company and the nature of its operations. Specifically, Deer Solution Franchising, LLC was established in New Jersey on December 30, 2021, to offer franchise opportunities for a home-based service that protects properties from deer damage. The company offers both individual unit and area development franchises.
The notes also contain a summary of significant accounting policies used in preparing the financial statements. These policies conform to generally accepted accounting principles (GAAP). The notes address the basis of accounting, defining cash equivalents, how the brand development fund is managed, how accounts receivable are handled, and how federal income taxes are treated.
Management is responsible for the integrity and objectivity of these financial statements and notes. The auditor's report also mentions the inclusion of these notes, indicating that the audit opinion is based, in part, on a review of these notes. These notes provide additional context and details about the figures presented in the balance sheets and other financial statements.