Does the opinion state that the financial statements of Mrcool Franchising, LLC present fairly the company's financial position as of December 31, 2022?
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.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the independent auditor's report does address the financial statements as of December 31, 2022. The report, dated February 13, 2024, states that the auditors have audited the balance sheet of Mr. Cool Franchising, LLC as of December 31, 2023, and also the balance sheet as of December 31, 2022.
The auditor's opinion is that the balance sheets of Mr. Cool Franchising, LLC as of December 31, 2023 and 2022, present fairly, in all material respects, the financial position of Mrcool as of those dates. This indicates that the financial statements for these years are considered accurate and reliable according to generally accepted accounting principles.
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. This means the auditors did not audit these specific statements for 2022 and therefore do not express an opinion on them. This is because they were not engaged to audit these particular statements for that year. A prospective franchisee should consider this when reviewing Mrcool's financial performance and stability.