What exhibit contains the Dermani Medspa audited financial statements?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
INDEPENDENT AUDITOR'S REPORT
To the Member of dermani MEDSPA Franchising, LLC Windermere, Florida
Opinion
We have audited the accompanying financial statements of dermani MEDSPA Franchising, LLC, which comprise the balance sheet as of December 31, 2024, and the related statements of operations and changes in member's deficit and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of dermani MEDSPA Franchising, LLC as of December 31, 2024, 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.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of dermani MEDSPA Franchising, LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about dermani MEDSPA Franchising, LLC's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa FDD, the audited financial statements for the company are included within Item 23, which is titled "Receipts". Item 23 includes the independent auditor's reports and the financial statements for the years ending December 31, 2022, December 31, 2023, and December 31, 2024. These statements include the balance sheets, statements of operations, changes in member's deficit, and cash flows, along with related notes.
The inclusion of these audited financial statements in Item 23 allows potential Dermani Medspa franchisees to review the financial health and performance of the franchisor. This information is crucial for making an informed investment decision, as it provides insights into the company's profitability, assets, liabilities, and cash flow management. The independent auditor's report offers an unbiased opinion on the fairness of the financial statements, adding credibility to the information presented.
Prospective franchisees should carefully examine these financial statements and consult with a financial advisor to fully understand the implications. Key areas to focus on include revenue trends, expenses, profitability, debt levels, and cash flow patterns. Understanding these financial aspects can help franchisees assess the financial stability of Dermani Medspa and its ability to support its franchisees.