For how long has Endless Summer Sweets been in business?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| We have not been in business for three years or more, and therefore cannot include | |
|---|---|
| all financial statements required by the Franchise Rule of the Federal Trade Commission. | |
| Exhibit E contains our audited opening balance sheet dated December 31, 2023. Our fiscal year | |
| end is December 31st. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the company has not been in business for three years or more. Because of this, Endless Summer Sweets cannot include all financial statements typically required by the Franchise Rule of the Federal Trade Commission. However, the FDD does include the company's audited opening balance sheet dated December 31, 2023.
The financial statements included in the FDD cover the period from March 9, 2023, to December 31, 2023. The company was officially formed in March 2023, and its registration for the offer and sale of franchises with the California Department of Financial Protection Innovation was filed on August 8, 2023, and is effective until April 30, 2024.
For a prospective franchisee, this means Endless Summer Sweets has a limited operating history at the time of the 2024 FDD. While not uncommon for newer franchises, franchisees should conduct thorough due diligence to assess the risks and opportunities associated with investing in a relatively new franchise system. This includes carefully reviewing the provided financial statements, speaking with existing franchisees (if any), and seeking professional advice.