Are the Engineering For Kids financial statements consolidated?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITOR'S REPORT
To the Member of Engineering for Kids International, LLC
Opinion
We have audited the accompanying financial statements of Engineering for Kids International, LLC which comprise the balance sheet as of December 31, 2024, and the related statements of operations, member's equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Engineering for Kids International, LLC as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 FDD, the financial statements provided are specifically for Engineering for Kids International, LLC. The Independent Auditor's Report explicitly states that the audit was conducted on the financial statements of Engineering for Kids International, LLC, covering the balance sheet as of December 31, 2024, and related statements for the year then ended.
Furthermore, Note 1 within Item 22 clarifies that the financial statements are prepared for Engineering for Kids International, LLC, in conformity with generally accepted accounting principles in the United States of America. This indicates that the statements reflect the financial position and performance of the individual entity, Engineering for Kids International, LLC, rather than a consolidated group of entities.
Given that the audit report and the summary of accounting policies both refer specifically to Engineering for Kids International, LLC, and there is no mention of consolidated entities, it can be inferred that the financial statements are not presented on a consolidated basis. A prospective franchisee should confirm this understanding with Engineering For Kids to ensure complete clarity.