Are the Financial Statements of Desi District included as an exhibit in the 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 the 2024 Desi District Franchise Disclosure Document, full financial statements are not included due to the company's limited operating history. Desi District states that it has 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. However, Exhibit F does contain Desi District's audited opening balance sheet dated June 15, 2024. The company's fiscal year ends on December 31.
Because Desi District does not yet have a multi-year operating history, the FDD only includes the opening balance sheet. This is a common situation for newer franchisors. The balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.
A prospective franchisee should carefully review the opening balance sheet to assess the financial health of Desi District. It is important to understand the company's current financial position, but keep in mind that this is just a starting point. Since there are no past income statements, cash flow statements, or other historical financial data, a potential franchisee may want to ask for more information from Desi District to get a better sense of the company's financial stability and future prospects.
It would be prudent for a potential franchisee to seek professional financial advice and conduct thorough due diligence before investing in a Desi District franchise.