What entities are included in the financial statements of DL Franchising, LLC (Deka Lash)?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The financial statements and accompanying notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The financial statements and accompanying notes of DL Franchising, LLC, include the accounts of DL Brands, LLC and DL Products, LLC, which are both 100% owned by DL Franchising, LLC. Accordingly, all significant inter-company transactions and balances have been eliminated. These limited liability companies have terms of 99 years or sooner as determined by the members.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the financial statements of DL Franchising, LLC include the accounts of DL Brands, LLC and DL Products, LLC. Both DL Brands, LLC and DL Products, LLC are wholly-owned subsidiaries, with DL Franchising, LLC owning 100% of each.
Because these entities are included in the financial statements, all significant inter-company transactions and balances between DL Franchising, LLC, DL Brands, LLC, and DL Products, LLC are eliminated during the financial consolidation process. This means that any revenue, expenses, or debts between these entities are not reflected in the overall financial statements.
These limited liability companies have terms of 99 years or sooner as determined by the members. This indicates the intended lifespan of these entities, although the actual duration can be shorter if the members decide to dissolve them earlier. A prospective franchisee can review the financial statements to understand the financial performance and position of Deka Lash and its related entities, keeping in mind the consolidation and elimination of inter-company transactions.