What is the date of the audited opening balance sheet included in the Desi District FDD?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| We have not been in business for three years or more, and therefore cannot include | |
|---|---|
| all financial statements required by the Franchise Rule of the Federal Trade Commission. | |
| Exhibit F contains our audited opening balance sheet dated 6/15/2024. Our fiscal year end is | |
| December 31. |
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, because the company has not been in business for at least three years, the document includes an audited opening balance sheet instead of full financial statements. This balance sheet, which is included as Exhibit F, is dated June 15, 2024. The FDD also notes that Desi District's fiscal year ends on December 31.
For a prospective franchisee, the opening balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time. Because Desi District is a relatively new franchise system, the balance sheet offers insight into the company's initial financial position.
It is important to note that the balance sheet only reflects a single date and does not show the company's financial performance over time. Therefore, a potential franchisee should carefully review the balance sheet in conjunction with other information in the FDD and conduct their own due diligence to assess the financial viability of the franchise opportunity.