What accounting standards must I use for Dryject's financial record keeping?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of DryJect Management, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
I conducted my audit in accordance with auditing standards generally accepted in the United States of America. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am required to be independent of DryJect Management, LLC and to meet my other ethical responsibilities in accordance with the relevant ethical requirements relating to my audit. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, DryJect Management, LLC's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. This indicates that Dryject franchisees are expected to adhere to these same standards for their financial record keeping. These principles, often referred to as GAAP, ensure uniformity and comparability in financial reporting across different businesses.
For a prospective Dryject franchisee, this means that you will need to maintain your financial records in a manner that complies with GAAP. This includes using accrual accounting, properly recognizing revenue and expenses, and following standardized formats for financial statements such as balance sheets, income statements, and cash flow statements.
To ensure compliance, it would be prudent for a Dryject franchisee to consult with a qualified accountant or financial professional who is well-versed in GAAP. This will help in setting up appropriate accounting systems and processes from the outset and ensure accurate and reliable financial reporting. Furthermore, maintaining financial records in accordance with GAAP will also be essential for any potential audits or when seeking financing for the franchise.