Which exhibit in the Desi District FDD contains the audited opening balance sheet?
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 the 2024 Desi District Franchise Disclosure Document, Exhibit F contains the company's audited opening balance sheet. The balance sheet is dated June 15, 2024. Desi District's fiscal year ends on December 31.
Because Desi District has not been in business for at least three years, the FDD does not include all financial statements typically required by the Franchise Rule of the Federal Trade Commission. The inclusion of an audited opening balance sheet provides some financial transparency for prospective franchisees, even though a full set of historical financial statements is not yet available.
Prospective franchisees should carefully review Exhibit F and consult with a financial advisor to understand Desi District's financial position. This is especially important given the limited operating history of the company and the absence of comprehensive financial statements. Understanding the opening balance sheet can help franchisees assess the financial stability of the franchisor.