Why does Mrcool not have three years of audited financial statements?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit D are our audited financial statements as of December 31, 2024 and December 31, 2023 and December 31, 2022. We were established on August 20, 2021 and our fiscal year ends on December 31. Because we have not been franchising for three years or more, we do not have three years of audited financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the company does not have three years of audited financial statements because it has not been franchising for three years or more. Mrcool was established on August 20, 2021, and its fiscal year ends on December 31. The attached financial statements as Exhibit D include those as of December 31, 2024, December 31, 2023, and December 31, 2022.
This is a common situation for newer franchises. The FDD requires a certain number of years of financial statements to provide potential franchisees with an understanding of the company's financial health. Since Mrcool has been operating for less than three years, it can only provide the financial statements it has available.
Prospective franchisees should carefully review the provided financial statements and consider the limited operating history when evaluating the Mrcool franchise opportunity. It may be beneficial to ask Mrcool for additional information or projections to supplement the financial statements provided.