What entities are included in the Deka Lash financial statements of DL Franchising, LLC?
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 Deka Lash's 2024 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 100% owned by DL Franchising, LLC. This means that the financial performance and position of these two subsidiary companies are consolidated into the overall financial reporting of DL Franchising, LLC.
The inclusion of these entities in the financial statements provides a more comprehensive view of the Deka Lash franchise system's financial health. By consolidating the financials, the franchisor presents a complete picture of its operations, including revenue streams and expenses related to DL Brands, LLC and DL Products, LLC. This consolidated approach eliminates any inter-company transactions and balances, offering a clearer understanding of the overall financial performance to potential franchisees.
Prospective franchisees should review these consolidated financial statements carefully to assess the financial stability and performance of the entire Deka Lash organization. Understanding the relationship between DL Franchising, LLC and its subsidiaries can offer insights into the revenue generation and cost structure of the franchise system. This information is crucial for making an informed investment decision and evaluating the potential risks and rewards associated with opening a Deka Lash franchise.