What happens if Zoomin Groomin is unable to engage an independent accounting firm?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
On December 8, 2017, KPMG LLP ("KPMG") resigned as the independent registered public accounting firm of Liberty Tax, Inc. (the "Company"), effective immediately, and KPMG's resignation was accepted and approved by the Audit Committee of the Board of Directors of the Company (the "Board"). The Company is currently in the process of finding a successor independent registered public accounting firm in the hope that the Company's financial statements for the second quarter ended October 31, 2017 can be completed with as little delay as possible.
Source: Item 8 — 01. Other Events. (FDD pages 67–68)
What This Means (2025 FDD)
The 2025 Zoomin Groomin FDD includes information about a previous change in the company's independent registered public accounting firm. Specifically, on December 8, 2017, KPMG LLP resigned as the independent registered public accounting firm of Liberty Tax, Inc., which was accepted and approved by the Audit Committee of the Board of Directors. The company stated they were in the process of finding a successor independent registered public accounting firm.
However, the FDD does not explicitly state what would happen if Zoomin Groomin is unable to engage an independent accounting firm. The document only mentions the previous change in accountants for Liberty Tax, Inc. and the company's efforts to find a replacement at that time.
To gain a comprehensive understanding of the implications if Zoomin Groomin cannot secure an independent accounting firm, a prospective franchisee should directly ask the franchisor about their contingency plans and the potential impact on financial reporting and franchise operations. This information is crucial for assessing the stability and transparency of the franchise system.