What financial statement does Desi District include in Exhibit F?
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 they have not been in business for at least three years, they are not including all financial statements typically required by the FTC's Franchise Rule. Instead, Exhibit F contains Desi District's audited opening balance sheet dated June 15, 2024. Desi District's fiscal year ends on December 31.
For a prospective franchisee, this means that the FDD will not include a full set of historical financial statements (such as income statements, cash flow statements, and full balance sheets) covering multiple years. These statements would normally provide insights into the franchisor's financial performance, stability, and profitability trends. The absence of these statements increases the importance of carefully reviewing the provided balance sheet and conducting thorough due diligence.
Given the limited financial history, a potential Desi District franchisee should consider seeking professional financial advice to assess the franchisor's financial condition and future prospects. It would be prudent to ask Desi District for more detailed information about their financial projections, key assumptions, and strategies for achieving sustainable growth. Speaking with existing franchisees (listed in Exhibit H) can also provide valuable insights into their experiences and the financial performance of their Desi District locations.