What specific financial statement is included in Exhibit F for Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
issuance date:
None
Item 21 FINANCIAL STATEMENTS
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 o
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 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.
This means that prospective franchisees reviewing Desi District's FDD will find a limited set of financial statements compared to more established franchises. The audited opening balance sheet provides a snapshot of the company's assets, liabilities, and equity as of June 15, 2024. This document can help potential franchisees assess the financial health and stability of Desi District at that specific point in time.
However, because it is only a balance sheet, it does not show the company's financial performance over a period of time (like an income statement or cash flow statement would). The absence of these statements may make it more challenging for franchisees to fully evaluate the financial track record and profitability of Desi District.
Given the limited financial information, prospective franchisees should consider this carefully and perform thorough due diligence. They should ask Desi District for additional financial information, speak with existing franchisees about their experiences, and possibly consult with a financial advisor to fully understand the financial risks and opportunities associated with investing in a Desi District franchise.