What is the responsibility of the management of Embassy Suites By Hilton regarding the preparation and presentation of financial statements?
Embassy_Suites_By_Hilton 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 the Company's ability to continue as a going concern within one year after the date the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 FDD, the management of Hilton Franchise Holding LLC, which franchises Embassy Suites By Hilton, 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. This includes designing, implementing, and maintaining internal controls relevant to preparing and presenting financial statements that are free from material misstatement, whether due to fraud or error.
Management is also required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the date the financial statements are available to be issued. This assessment is critical for ensuring the transparency and reliability of the financial information provided to potential investors and franchisees.
In practical terms, this means that Embassy Suites By Hilton's management must ensure the accuracy and integrity of the financial data. They must adhere to established accounting standards and implement robust internal controls to prevent errors or fraud. The evaluation of the company's ability to continue as a going concern is particularly important, as it provides stakeholders with an understanding of the company's financial stability and long-term viability. Prospective franchisees should be aware of these responsibilities, as they directly impact the reliability of the financial information used to assess the franchise opportunity.