Are the financial statements for Hawaiian Bros Island Grill audited?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
The Member Hawaiian Bros Franchising, LLC
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Hawaiian Bros Franchising, LLC, which comprise the balance sheets as of December 29, 2024 and December 31, 2023, and the related statements of operations, member's equity, and cash flows for the years ended December 29, 2024, December 31, 2023, and the period from September 16, 2022 to December 25, 2022, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Hawaiian Bros Franchising, LLC as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for the year ended December 29, 2024 and December 31, 2023, and the period from September 16, 2022 to December 25, 2022, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Hawaiian Bros Franchising, LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter – Member
As discussed in Note 1 to the financial statements, the Company has an agreement with its Member related to administrative, management, support activities, and various other items. The accompanying financial statements may not be indicative of conditions that would have existed if the Company had been operated as an unaffiliated entity without the support of its Member. Our opinion is not modified with respect to this matter.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 77)
What This Means (2025 FDD)
Yes, the 2025 Franchise Disclosure Document for Hawaiian Bros Island Grill includes an audit report on the company's financial statements. The "Report of Independent Auditors" states that Hawaiian Bros Franchising, LLC's balance sheets as of December 29, 2024, and December 31, 2023, along with the related statements of operations, member's equity, and cash flows for the years ending December 29, 2024, December 31, 2023, and the period from September 16, 2022, to December 25, 2022, have been audited.
The audit was conducted following generally accepted auditing standards in the United States of America (GAAS). According to the report, the auditors believe that the audit evidence they obtained was sufficient and appropriate to provide a basis for their audit opinion. Their opinion is that the financial statements present fairly, in all material respects, the financial position of Hawaiian Bros Franchising, LLC.
The inclusion of an audited financial statement is a common practice in franchising, as it provides potential franchisees with an independent assessment of the franchisor's financial health. The audit report also mentions an emphasis of matter regarding an agreement with its Member related to administrative, management, and support activities, suggesting that the company's financial statements might not be indicative of conditions if it operated as an unaffiliated entity. This is something a prospective franchisee may want to investigate further.