What determination must be made regarding Dryject Management, LLC's ability to continue as a going concern?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about DryJect Management, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, management is required to evaluate whether there are conditions or events that raise substantial doubt about DryJect Management, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This evaluation is a standard accounting practice.
This assessment is part of management's responsibility for preparing and fairly presenting the financial statements in accordance with accounting principles generally accepted in the United States of America. It also includes designing, implementing, and maintaining internal controls relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Furthermore, the independent auditor must conclude whether, in their judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about DryJect's ability to continue as a going concern for a reasonable period of time. This conclusion is a critical component of the auditor's responsibilities during the audit of the financial statements.