What is the significance of December 31st in relation to Mrcool's financial statements?

According to Mrcool's 2025 Franchise Disclosure Document, December 31st is the date on which Mrcool Franchising, LLC's financial statements are prepared and audited for each year. The balance sheets, statements of income, members' equity, and cash flows are all presented as of and for the years ended December 31st. This date serves as the cutoff for the financial reporting period, providing a snapshot of the company's financial position and performance at that specific point in time. Independent auditors review these financial statements to ensure they fairly represent Mrcool's financial position in accordance with accounting principles generally accepted in the United States of America.

Specifically, the independent auditors' reports included in the FDD review the balance sheets as of December 31, 2024 and 2023, and the related statements of income, members' equity, and cash flows for the years then ended. This means that all financial data, transactions, and activities up to December 31st are included in these statements, providing a comprehensive view of Mrcool's financial health for those periods. The auditors issue their opinion based on this review, indicating whether the financial statements are presented fairly and in accordance with accounting standards.

For a prospective franchisee, this means that the financial statements provided in the FDD offer a look at Mrcool's financial performance up to the end of the stated year. Reviewing these statements, along with the auditor's opinion, can help a franchisee assess the financial stability and performance of Mrcool. It's important to note that while the financial statements provide historical data, they may not be indicative of future performance. Additionally, subsequent events after December 31st are evaluated and disclosed, providing further insight into any significant changes that may impact the company's financial position.