What should be concluded regarding Moes Southwest Grill's ability to continue as a going concern during the audit?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the consolidated financial statements of GoTo Foods Systems LLC (a Delaware limited liability company) and subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 29, 2024 and December 31, 2023, and the related consolidated statements of operations, changes in member's equity, and cash flows for the years ended December 29, 2024, December 31, 2023, and December 25, 2022, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for the years ended December 29, 2024, December 31, 2023, and December 25, 2022 in accordance with accounting principles generally accepted in the United States of America.
Basis for opinion
We conducted our audits of the consolidated financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company 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.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the audit of GoTo Foods Systems LLC, the parent company, was conducted by Grant Thornton LLP. The auditor's report states that the consolidated financial statements of GoTo Foods Systems LLC present fairly, in all material respects, the financial position of the company as of December 29, 2024, and December 31, 2023. This indicates that the auditor believes the financial statements are presented accurately and in accordance with accounting principles generally accepted in the United States of America.
The auditor's responsibilities include concluding whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for a reasonable period of time. The auditor's opinion suggests that, based on their audit, there is no substantial doubt about GoTo Foods Systems LLC's ability to continue as a going concern. This is a positive indicator for prospective Moe's Southwest Grill franchisees, as it suggests the parent company is financially stable.
It is important to note that the auditor's report provides reasonable assurance, which is a high level of assurance, but not absolute assurance. There is always a risk of material misstatement, whether due to fraud or error, that the audit may not detect. However, the independent audit and the unqualified opinion provide a level of confidence in the financial health of GoTo Foods Systems LLC, which supports the stability of its subsidiaries like Moe's Southwest Grill. A prospective franchisee should review the full financial statements and notes for a comprehensive understanding of the company's financial condition.