Since Ella Cafe has not been in business for three years or more, what financial statements are included in Exhibit F?

According to Ella Cafe's 2024 Franchise Disclosure Document, because the company has not been in business for three years or more, the financial statements included in Exhibit F are not the complete set typically required by the FTC's Franchise Rule. Instead, the exhibit contains a limited set of financial documents.

Specifically, Exhibit F includes an unaudited balance sheet as of June 30, 2024, along with a profit and loss statement covering the period from January 1, 2024, to June 30, 2024. Additionally, the exhibit provides audited balance sheets for the years ending December 31, 2023, and December 31, 2022. These audited statements also include related statements of operations, changes in stockholders' equity, and cash flows for those years.

Prospective franchisees should note that the balance sheet as of June 30, 2024 and the profit and loss statement from January 1, 2024 to June 30, 2024 are unaudited, meaning they have not been independently verified by a certified public accountant. The FDD explicitly advises that prospective franchisees should be aware that no independent CPA has audited these figures or expressed an opinion on their accuracy or form. This lack of independent verification introduces a higher level of risk, and franchisees should exercise caution and consider seeking their own professional financial advice when reviewing these statements.