If the Dog Haus financial statements are not audited, where would that be disclosed?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Tables 1 through 9 below are limited to actual historical unaudited information provided to us by our franchisees for franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens and Remote Kitchens that were open for business for at least one year on December 31, 2024, December 31, 2023 and on December 31, 2022. The financial performance representations that appear in Tables 1 through 9 below do not include costs of sales, operating expenses or other costs or expenses that must be deducted from Gross Sales to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Dog Haus Fast Casual Restaurant, Dog Haus Biergarten, or Dog Haus Remote Kitchen. Franchisees or former franchisees listed in this Disclosure Document may be one source of this information. The characteristics of each Dog Haus Fast Casual Restaurant, Dog Haus Biergarten, and Dog Haus Remote Kitchen included in this Item 19 and franchises for Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens that may be offered to prospective franchisees are generally similar, except for possible variances in square footage, layout and the like.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Dog Haus FDD, Item 19 states that the financial performance representations in Tables 1 through 9 are based on actual historical unaudited information. This information was provided to Dog Haus by its franchisees for franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Remote Kitchens. These establishments had to be open for at least one year as of December 31, 2024, December 31, 2023, and December 31, 2022.
This means that the financial data presented in these tables has not been verified by an independent auditor. Prospective franchisees should be aware that unaudited financial statements carry a higher risk of inaccuracy compared to audited statements, as they have not been subjected to the same level of scrutiny.
Dog Haus also notes that the financial performance representations in Tables 1 through 9 do not include costs of sales, operating expenses, or other costs or expenses that must be deducted from Gross Sales to obtain your net income or profit. Dog Haus advises that you should conduct an independent investigation of the costs and expenses you will incur in operating your Dog Haus Fast Casual Restaurant, Dog Haus Biergarten, or Dog Haus Remote Kitchen. Franchisees or former franchisees listed in this Disclosure Document may be one source of this information.
In the franchise industry, it is common for franchisors to present either audited or unaudited financial statements. If the statements are unaudited, the FDD should explicitly state this fact, as Dog Haus does in Item 19. This disclosure allows potential franchisees to make informed decisions about the reliability of the financial information presented.