What financial statement is included in Exhibit F of the Desi District FDD?

According to Desi District's 2024 Franchise Disclosure Document, because the company has not been in business for three years or more, it cannot include all financial statements required by the Franchise Rule of the Federal Trade Commission. Exhibit F contains Desi District's audited opening balance sheet dated June 15, 2024. The company's fiscal year end is December 31.

An audited balance sheet provides a snapshot of Desi District's assets, liabilities, and equity as of a specific date, offering transparency into the company's financial position at that time. The audit was conducted in accordance with auditing standards generally accepted in the United States of America. An independent accountant has audited the financial statements of Desi District Franchise Group, LLC which comprise the Balance Sheet as of June 15, 2024, and the related notes for the period then ended.

Prospective franchisees should focus on understanding the balance sheet's details, including cash balances, debts, and overall net worth, to assess the financial stability of Desi District. Because Desi District is relatively new, the balance sheet offers a starting point for evaluating its financial health, but it is essential to consider this in conjunction with other factors like the brand's growth strategy and market potential.

Given that Desi District has not been in business for three years, the FDD does not include the full range of financial statements typically required, such as income statements or cash flow statements. Therefore, potential franchisees should ask Desi District for additional financial information, such as projected financial performance and key performance indicators, to gain a more comprehensive understanding of the company's financial outlook.