Up to what date does the financial statement evaluation of subsequent events for Floyds 99 include?
Floyds_99 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 that the financial statements are issued or available to be issued.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 FDD, the independent auditor's report for Floyds 99 Franchising, LLC includes audits of the balance sheets as of December 29, 2024; December 31, 2023; and December 25, 2022, and the related statements of operations, member's equity, and cash flows for the years then ended.
The report indicates that management is required to evaluate conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. However, the FDD does not specify a particular date to which the evaluation of subsequent events extends.
As the FDD does not state the specific date through which subsequent events were evaluated, it is important for a prospective franchisee to ask Floyds 99's management for clarification on this matter. Understanding the period covered by the subsequent events review can provide additional assurance regarding the financial stability and outlook of the company.