Are there any qualifications or exceptions in the auditor's opinion for Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
February 12, 2025
INDEPENDENT AUDITORS' REPORT
To the LLC Members MRCOOL Franchising, LLC Hickory, Kentucky
Opinion
We have reviewed the accompanying financial statements of MRCOOL Franchising, LLC (a Kentucky limited liability company), which comprise 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, and the related notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MRCOOL Franchising, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended December 31, 2024 and 2023, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of MRCOOL Franchising, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the auditor's report for the financial statements of December 31, 2024 and 2023, states that the financial statements present fairly, in all material respects, the financial position of MRCOOL Franchising, LLC. This opinion indicates that the financial statements are presented in accordance with accounting principles generally accepted in the United States of America.
However, in the Independent Auditor's Report dated February 13, 2024, regarding the financial statements of Mr. Cool Franchising, LLC for the year 2023, the auditor included a disclaimer of opinion on the statements of income, retained earnings, and cash flows for the year ended December 31, 2022. The auditor stated they were not engaged to audit these particular statements for 2022 and, therefore, did not extend their auditing procedures to express an opinion on them.
For a prospective Mrcool franchisee, this means that while the auditor has given a clean opinion for the years 2023 and 2024, there was a limitation in scope for the 2022 statements. This doesn't necessarily indicate a problem, but it does highlight that a full audit was not conducted for all financial statements in 2022. It would be prudent for a potential franchisee to inquire with Mrcool about the reasons for the limited scope in 2022 and to understand any implications this might have had on the financial data presented.