What exhibit contains the financial statements for Hydrodog?
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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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 Legacy Franchisors LLC D/B/A Hydrodog'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 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the financial statements for Legacy Franchisors LLC D/B/A Hydrodog, which includes balance sheets, statements of operations, members' equity, and cash flows, were audited by independent auditors. The audit report provides an opinion on the fairness and accuracy of these financial statements, asserting that they present fairly the financial position of Hydrodog as of December 31, 2024 and 2023. These statements are prepared in accordance with accounting principles generally accepted in the United States of America.
The audit was conducted following auditing standards generally accepted in the United States of America, ensuring that the audit evidence obtained was sufficient and appropriate to support the auditors' opinion. Management is responsible for the preparation and presentation of these financial statements, including the implementation and maintenance of internal controls to prevent material misstatements. Management must also evaluate Hydrodog's ability to continue as a going concern within one year after the financial statements are issued.
Furthermore, the financial statements include notes that provide additional context and detail. For instance, Note A summarizes significant accounting policies, including the nature of Hydrodog's operations, which involve selling franchises for mobile dog grooming businesses. As of December 31, 2024, Hydrodog had 19 active franchises. The notes also address the use of estimates in preparing the financial statements, concentration of credit risk arising from cash deposits exceeding insured limits, and accounting for accounts receivable using the CECL model.