What accounting principles must Hydrodog's financial statements adhere to?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
To the Ownership of Legacy Franchisors LLC D/B/A Hydrodog
Opinion
We have audited the accompanying financial statements of Legacy Franchisors LLC D/B/A Hydrodog (a Maine Limited Liability Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, members' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Legacy Franchisors LLC D/B/A Hydrodog as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended 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. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Legacy Franchisors LLC D/B/A Hydrodog 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the company's financial statements must adhere to accounting principles generally accepted in the United States of America. This is explicitly stated in the Independent Auditors' Report, which provides an opinion on the fairness of Hydrodog's financial statements as of December 31, 2024 and 2023. The audit was conducted in accordance with auditing standards generally accepted in the United States of America.
Furthermore, the FDD emphasizes the importance of estimates in preparing financial statements. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates are used for various aspects, including allowance for credit losses, recording right-of-use (ROU) assets and liabilities, and contingencies. However, the document also notes that actual results could differ from these estimates.
Hydrodog also requires franchisees to maintain a bookkeeping, accounting, and recordkeeping system that conforms to the requirements and formats prescribed by the company. Hydrodog may also require franchisees to use approved computer hardware and software to maintain sales data and other information. Hydrodog retains the right to access all sales data, customer information, financial records, and other business information through the computer system at all times. Franchisees must also furnish regular reports, including monthly gross sales reports, quarterly profit and loss statements and balance sheets, and annual profit and loss and source and use of funds statements, along with a balance sheet for the business's fiscal year.