Are the financial statements for Mrcool audited or unaudited?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
February 13, 2024
INDEPENDENT AUDITORS' REPORT
To the LLC managers Mr. Cool Franchising, LLC Hickory, Kentucky
Opinion
We have audited the accompanying financial statements of Mr. Cool Franchising, LLC (a Kentucky limited liability company), which comprise the balance sheet as of December 31, 2023, and the related statements of income, members' equity, and cash flows for the year then ended, and the related notes to the financial statements. We have also audited the accompanying balance sheet of Mr. Cool Franchising, LLC as of December 31, 2022.
In our opinion, the balance sheets of Mr. Cool Franchising, LLC as of December 31, 2023 and 2022, and the statements of income, members' equity, and cash flows for the year ended December 31, 2023 present fairly, in all material respects, the financial position of Mr. Cool Franchising, LLC as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the year then ended December 31, 2023 in accordance with accounting principles generally accepted in the United States of America.
Disclaimer of Opinion on Statements of Income, Retained, Earnings and Cash Flows
We do not express an opinion on the results of operations and cash flows for the year ended December 31, 2022. Because we were not engaged to audit the statements of income, retained earnings, and cash flows, we did not extend our auditing procedures to enable us to express an opinion on results of operations and cash flows for the year ended December 31, 2022.
Basis for Opinion
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the financial statements have been reviewed by an independent auditor. The Independent Auditor's Report states that Bowden & Wood, PLLC, Certified Public Accountants, have audited the accompanying financial statements of Mr. Cool Franchising, LLC, including the balance sheets as of December 31, 2023, and the related statements of income, members' equity, and cash flows for the year then ended, and the related notes to the financial statements. They have also audited the accompanying balance sheet of Mr. Cool Franchising, LLC as of December 31, 2022.
The report expresses an opinion that the balance sheets as of December 31, 2023 and 2022, and the statements of income, members' equity, and cash flows for the year ended December 31, 2023 present fairly, in all material respects, the financial position of Mr. Cool Franchising, LLC as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the year then ended December 31, 2023 in accordance with accounting principles generally accepted in the United States of America.
However, the report includes a disclaimer of opinion on the statements of income, retained earnings, and cash flows for the year ended December 31, 2022, because the auditors were not engaged to audit these particular statements for that year. This means that while the balance sheet for 2022 was audited, other key financial statements were not subjected to the same level of scrutiny. This is something a potential franchisee should consider when reviewing Mrcool's financial performance.