When evaluating Healthsource Chiropractic, LLC's financial statements, what must be evaluated regarding accounting policies and estimates?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, when auditing the financial statements, an auditor must evaluate the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

This means a prospective franchisee should be aware that the financial statements have been examined by an independent auditor who has assessed whether Healthsource Chiropractic's management has used suitable accounting methods and made reasonable estimates in preparing the financial statements. The auditor also evaluates the overall presentation to ensure the financial statements are clear and understandable.

This evaluation is part of ensuring that the financial statements provide a fair and accurate view of Healthsource Chiropractic's financial position and performance. It gives potential franchisees more confidence in the reliability of the financial information presented in the FDD. The auditor's report, included with the financial statements, will state whether the statements are presented fairly in accordance with generally accepted accounting principles.