What is the timeframe considered when evaluating Healthsource Chiropractic, LLC's ability to continue as a going concern?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 HealthSource Chiropractic, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, when preparing financial statements, HealthSource Chiropractic's management must evaluate whether there are conditions or events that could raise substantial doubt about the company's ability to continue operating as a going concern. This evaluation considers conditions within one year after the date that the financial statements are available to be issued.
This "going concern" assessment is a standard accounting practice. It requires the company's management and auditors to consider any factors that might prevent HealthSource Chiropractic from continuing to operate normally for the next 12 months. These factors could include things like significant debt, declining revenue, or potential legal challenges.
For a prospective franchisee, this information is reassuring. It confirms that HealthSource Chiropractic's financial statements are prepared with a critical eye toward the company's long-term viability. If the auditors had substantial doubts, it would be disclosed in the financial statements. The absence of such a disclosure suggests that HealthSource Chiropractic is expected to continue operating normally for the foreseeable future.