Are the monthly financial statements prepared by the Manager for Dermani Medspa audited?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, there is no mention of the monthly financial statements prepared by the Manager being audited. The document includes independent auditor's reports on the company's financial statements for the years 2022, 2023 and 2024. These audits are conducted by Nichols, Cauley & Associates, LLC, and cover the balance sheet, statements of operations, changes in member's deficit, and cash flows.
The independent auditor's reports included in the FDD confirm that the financial statements of Dermani Medspa Franchising, LLC are audited annually. These audits are performed in accordance with generally accepted auditing standards (GAAS) to ensure the fair presentation of the company's financial position. The auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement.
However, the excerpts do not provide information on whether the monthly financial statements prepared by the Manager for individual Dermani Medspa locations are also subject to auditing. As the FDD does not specify whether monthly financial statements are audited, it would be prudent for a potential franchisee to seek clarification from Dermani Medspa regarding the auditing of monthly financial statements prepared at the franchise level.