Are the financial statements presented for Dq Treat on a consolidated basis?
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 presented are consolidated. Specifically, Exhibit K includes the consolidated balance sheets of International Dairy Queen, Inc. (IDQ) at 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. These statements are accompanied by an independent auditor's report.
These consolidated financial statements are for IDQ, which is the parent corporation of American Dairy Queen (ADQ) and its other subsidiaries. The FDD clarifies that separate financial statements for ADQ are not included in the document. However, IDQ provides an unconditional guarantee to fulfill ADQ's obligations to its franchisees should ADQ fail to do so, and a copy of IDQ's written Guarantee of Performance is included in Exhibit K.
The notes to the consolidated financial statements explain that they were prepared following generally accepted accounting principles (GAAP) in the United States. The statements include the accounts of the company and its affiliates, with all significant intercompany balances and transactions eliminated. This consolidated approach provides a comprehensive view of the financial position and performance of the entire Dq Treat organization, including its subsidiaries.