What specific financial statement is included in the Endless Summer Sweets FDD?

According to the 2024 Endless Summer Sweets FDD, because the company has not been in business for three years or more, the document does not include all financial statements typically required by the Franchise Rule of the Federal Trade Commission. However, Exhibit E does contain the company's audited opening balance sheet dated December 31, 2023. The fiscal year end for Endless Summer Sweets is December 31st.

The FDD also includes an independent auditor's report for the period March 9, 2023, to December 31, 2023. This report covers the balance sheets as of December 31, 2023, and the related statements of income, retained earnings, and cash flows for the period from March 9, 2023, to December 31, 2023, along with related notes. The auditor, FACT Professional, Inc., based in Canoga Park, CA, believes that the financial statements present fairly the financial position, results of operations, and cash flows of Endless Summer Sweets Franchising Inc. as of December 31, 2023.

Additional financial statements included are the balance sheet as of December 31, 2023, the statement of cash flows from March 9 to December 31, 2023, and the statements of stockholder's equity for the period ended December 31, 2023. The FDD also contains Schedule I, which details the selling, general, and administrative expenses from March 9 to December 31, 2023, totaling $15,648, including $10,000 in advertising and promotion and $5,648 in professional fees. A prospective franchisee can use these statements to get an idea of the financial standing of the company.