What is the impact of the comprehensiveness of Zoomin Groomin's accounting review on forward-looking statements?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding potential impacts of KPMG's resignation, ability and timing to complete the accounting review and audits, comprehensiveness of the Company's accounting review and ability to engage an independent accounting firm and related matters. These statements are based upon current expectations, estimates, projections, beliefs and assumptions of Company management, and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to loss of key personnel or inability to engage accounting personnel as needed; inability to address the previously disclosed accounting matters; identification of additional material weaknesses or significant deficiencies; disagreements or additional reportable events that KPMG may identify in a letter addressed to the SEC pursuant to Item 304 of Regulation S-K; failure to engage an independent accounting firm, complete the audits and re-audits and file any required restatements and periodic reports; adverse effects resulting from the Company's common stock being delisted from the Nasdaq Stock Market LLC; risks relating to the substantial costs and diversion of personnel's attention and resources due to these matters and related litigation and other factors discussed in greater detail in the Company's infings with the SEC. You are cautioned not to place undue reliance on such statements and to consult the Company's most recent Annual Report on Form 10-K and other SEC filings for additional risks and uncertainties that may apply to the Company's business and the ownership of the Company's securities. The Company's forward-looking statements are presented as of the date made, and the Company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Source: Item 8 — 01. Other Events. (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the comprehensiveness of the company's accounting review is a factor in assessing forward-looking statements. These statements are the company's expectations, estimates, and beliefs about the future. However, the FDD cautions that actual events or results could differ significantly from these forward-looking statements due to various risks and uncertainties. These risks include the loss of key personnel, the inability to resolve previously disclosed accounting issues, the discovery of additional weaknesses in accounting practices, or disagreements with the accounting firm. The ability to complete the accounting review and audits also plays a role. Therefore, potential franchisees should not rely too heavily on these forward-looking statements.
The FDD highlights that these forward-looking statements are based on the management's current expectations and assumptions, but there is no guarantee that these expectations will be correct. The comprehensiveness of the accounting review directly impacts the reliability of these assumptions. If the review is not thorough, it may fail to uncover underlying issues that could affect the company's future performance. This could lead to inaccurate forward-looking statements that do not reflect the true risks and opportunities facing the company.
Zoomin Groomin advises prospective franchisees to consult the company's most recent Annual Report on Form 10-K and other filings with the SEC for a more detailed understanding of the risks and uncertainties associated with the business. The company also states that it is not obligated to update any forward-looking statements, even if new information or future events make them inaccurate. This means that the forward-looking statements in the FDD may not reflect the current state of the company's business or financial condition. Therefore, it is crucial for potential franchisees to conduct their own due diligence and seek professional advice before making any investment decisions.