Regarding Mrcool, what specific financial statements were not audited to enable the expression of an opinion on the results of operations and cash flows for the year ended December 31, 2022?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
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 financial statements regarding the results of operations and cash flows for the year ending December 31, 2022, were not audited. As stated in the Independent Auditor's Report, the auditors did not express an opinion on these specific statements for that year.
Specifically, the auditors were not engaged to audit the statements of income, retained earnings, and cash flows for the year ended December 31, 2022. Because of this, they did not perform the auditing procedures necessary to express an opinion on these particular financial statements. However, the balance sheet as of December 31, 2022, was audited.
This means that while Mrcool provides financial statements for that year, a potential franchisee should be aware that these statements have not been independently verified for accuracy. This does not necessarily mean the statements are inaccurate, but it does mean a potential investor needs to consider that an independent audit did not back them. It is advisable for prospective franchisees to carefully review the audited balance sheet for 2022 and the audited statements for the year ended December 31, 2023, and to seek professional financial advice to fully understand the implications.