What does the FDD advise prospective Mr. Sandless franchisees to consider regarding the unaudited financial statements?

According to Mr. Sandless's 2025 Franchise Disclosure Document, prospective franchisees or sellers of franchises should be aware that the financial statements included have not been audited by an independent certified public accountant. This means that no independent CPA has verified the accuracy, content, or form of these financial figures.

The FDD includes audited financial statements for the periods ending December 31, 2024, December 31, 2023 and December 31, 2022, as well as unaudited financial statements as of February 28, 2025. Because the February 28, 2025 statements are unaudited, prospective franchisees should exercise caution and conduct their own due diligence.

It is standard practice for franchisors to include audited financial statements in their FDDs to provide potential franchisees with a transparent view of the company's financial health. The inclusion of unaudited statements alongside audited ones is not uncommon, but the disclaimer serves as a reminder that these figures have not undergone the same level of scrutiny and verification. A prospective Mr. Sandless franchisee should consider consulting with a financial advisor or accountant to review these unaudited statements and assess the financial stability of the franchise before making any investment.