What period do the results of operations and cash flows cover in the Desi District's financial statements?
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.
INDEPENDENT ACCOUNTANT AUDIT REPORT
To the Management of DESI DISTRICT FRANCHISE GROUP, LLC
Opinion
We have audited the financial statements of DESI DISTRICT FRANCHISE GROUP, LLC (the "Company"), which comprise the Balance Sheet as of June 15, 2024, and the related notes for the period then ended. (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at June 15, 2024, and the results of its operations and its cash flows for the period ended June 15, 2024, in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the financial statements included only cover a limited period. Desi District 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. The FDD includes an audited opening balance sheet dated June 15, 2024. Desi District's fiscal year end is December 31.
An independent accountant's audit report states that the firm audited the financial statements of Desi District, which comprise the Balance Sheet as of June 15, 2024, and the related notes for the period then ended. The report indicates that the financial statements present fairly the financial position of Desi District as of June 15, 2024, and the results of its operations and its cash flows for the period ended June 15, 2024, in accordance with accounting principles generally accepted in the United States of America.
This means that the provided financial statements offer a snapshot of Desi District's financial status up to June 15, 2024, but do not provide a comprehensive historical view of the company's performance over several years. Prospective franchisees should be aware that the limited financial history may make it more challenging to fully assess the financial viability and growth potential of the franchise system. It is typical for established franchise systems to provide several years of financial statements to allow for trend analysis.