Are the Dog Haus financial statements consolidated or individual?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the financial statements of Dog Haus Worldwide, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations and members' deficit, and cash flows for the years ended December 31, 2024, 2023 and 2022, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, the financial statements provided are for Dog Haus Worldwide, LLC as an individual entity. The Independent Auditors' Report states that they audited the financial statements of Dog Haus Worldwide, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations and members' deficit, and cash flows for the years ended December 31, 2024, 2023 and 2022.
This means the financial statements reflect only the financial position, operations, and cash flows of Dog Haus Worldwide, LLC, and not those of any parent companies, subsidiaries, or affiliated entities. A prospective franchisee should be aware that these statements provide a standalone view of the franchisor's financial health.
It is typical in franchising for franchisors to present individual financial statements, especially when the franchise entity is a distinct legal entity. However, it is important for a potential franchisee to understand the implications of reviewing individual versus consolidated statements, as consolidated statements would provide a broader picture of the entire organization's financial standing, if one exists.