What was the restated net income for Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
As discussed in the Correction of an Error note to the consolidated financial statements, certain errors resulting in understatement of amounts previously reported for other current liabilities and other long term liabilities, and overstatement of franchise and license fees and net income as of December 31, 2023, and the year then ended, were discovered by management of the Company during the year. Accordingly, amounts reported for other current liabilities, other long term liabilities, franchise and license fees and net income have been restated in the 2023 financial statements now presented and an adjustment has been made to members' equity as of December 31, 2023, to correct the error. Our opinion is not modified with respect to that matter.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Focus Cfo includes an independent auditor's report that mentions a restatement of net income due to errors discovered by the company's management. Specifically, the errors led to an overstatement of net income as of December 31, 2023, and for the year then ended. As a result, the financial statements for 2023 have been restated to correct these errors.
While the auditor's report confirms that a restatement occurred, the specific amount of the restated net income for Focus Cfo is not provided in this excerpt. The excerpt only indicates that the restatement involved correcting errors that previously overstated the net income.
A prospective franchisee would need to review the full audited financial statements within the FDD to determine the exact restated net income figure for Focus Cfo. They should also inquire with Focus Cfo about the nature and magnitude of the errors that led to the restatement to fully understand the company's financial reporting history.