What years are covered by the audited financial statements of Loyalty Business Services, LLC, according to the Ledgers FDD opinion?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the accompanying financial statements of Loyalty Business Services, LLC (formerly Fide Holding, LLC) (a limited liability company), which comprise the balance sheets as of December 31, 2024, 2023 and 2022, and the related statements of operations, changes in 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 Loyalty Business Services, LLC as of December 31, 2024, 2023 and 2022, 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.
As discussed in Note 9 to the financial statements, the 2023 financial statements have been restated to correct a misstatement. Our opinion is not modified with respect to this matter.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the audited financial statements of Loyalty Business Services, LLC include balance sheets as of December 31, 2024, 2023, and 2022. These statements also incorporate the statements of operations, changes in members' equity, and cash flows for the years then ended. This provides a three-year financial overview of the company's performance.
The inclusion of three years' worth of financial statements is a standard practice in franchise FDDs, allowing prospective franchisees to review the financial history and trends of the franchisor. This enables them to assess the financial stability and performance of the company over time. The auditor's opinion indicates that the financial statements fairly represent the financial position of Loyalty Business Services, LLC for those years, in accordance with generally accepted accounting principles.
It's worth noting that the 2023 financial statements were restated to correct a misstatement, as detailed in Note 9 of the financial statements. However, the auditor's opinion was not modified with respect to this restatement. Prospective franchisees should carefully review Note 9 to understand the nature of the misstatement and the reasons for the restatement, as this could provide insights into the company's accounting practices and any potential financial risks.