Are the financial statements for Dq Treat audited?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The following audited financial statements of IDQ are included in this disclosure document as Exhibit K: consolidated balance sheets of IDQ at December 31, 2024 and 2023 and related consolidated statements of income and comprehensive income, stockholder's equity and cash flows for each of the years ended December 31, 2024, 2023 and 2022, together with the independent auditor's report.
These financial statements are the consolidated financial statements of IDQ, the parent corporation of ADQ and its other subsidiaries. ADQ's separate financial statements are not included in this disclosure document. Should ADQ fail to fulfill its obligations to its franchisees, however, IDQ unconditionally guarantees to fulfill such obligations. A copy of IDQ's written Guarantee of Performance is included in Exhibit K.
Source: Item 21 — UItem 21U***:** U**Financial Statements (FDD page 67)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the financial statements of International Dairy Queen, Inc. (IDQ) are indeed audited. Item 21 explicitly states that the audited financial statements of IDQ are included as Exhibit K in the disclosure document. These statements consist of consolidated balance sheets as of December 31, 2024, and 2023, along with related consolidated statements of income and comprehensive income, stockholder's equity, and cash flows for the years ended December 31, 2024, 2023, and 2022, accompanied by the independent auditor's report.
These audited financial statements pertain to IDQ, the parent corporation of American Dairy Queen (ADQ) and its other subsidiaries. While ADQ's separate financial statements are not included in the document, IDQ provides an unconditional guarantee to fulfill ADQ's obligations to its franchisees should ADQ fail to do so. This guarantee is also included in Exhibit K.
The inclusion of audited financial statements provides prospective franchisees with a degree of assurance regarding the financial health and stability of the parent company, IDQ. Audited statements imply that an independent accounting firm has reviewed the financial records and provided an opinion on their fairness and accuracy, in accordance with generally accepted accounting principles. This is a common practice in franchising, as it offers transparency and helps potential franchisees make informed decisions. The independent auditor's report included in Exhibit K further details the scope and basis of the audit, including the responsibilities of both management and the auditor in the financial reporting process.