On what pages of the financial statements can I find the notes related to Zoomin Groomin's financial statements?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Business
Zoomin Groomin USA LLC (hereinafter "Company") was formed on December 20, 2020 as a Virginia limited liability company for the purpose of offering franchise opportunities and support for entrepreneurs who want to own a franchise location of Zoomin Groomin, a mobile pet grooming company.
Basis of Accounting
The Company uses the accrual basis of accounting, and their accounting period is the 12-month period ending December 31 of each year.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash equivalents include all highly liquid investments with maturities of three months or less at the date of purchase. Also included with cash equivalents are deposits in-transit from banks for payments related to third-party credit card and debit card transactions.
Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, long term notes receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities.
Inventory
Inventory is valued at cost when purchased and is accounted for using the specific identification method of valuation. The inventory consists of vehicles and trailers held for future resale to franchises. The Company will recognize future income from the sales as ordinary other income on the date the title is transferred. Subsequent to the year ended December 31, 2023, the Company will no longer hold title to the vehicles and thus, the vehicles will not be recorded as inventory of the Company in subsequent years. As of December 31, 2024, all inventory has been sold.
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounts Receivable
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the financial statements include notes. These notes are integral to understanding the financial statements, as they provide additional details and explanations of the figures presented in the balance sheets, statements of operations, members' equity, and cash flows.
The notes to the financial statements include a summary of significant accounting policies. This section describes the accounting methods Zoomin Groomin uses to prepare its financial statements, such as the accrual basis of accounting and policies related to cash equivalents and inventory valuation. Understanding these policies is crucial for a franchisee to accurately interpret the financial data provided.
The FDD excerpts do not specify the exact page numbers where these notes can be found. To locate the notes, a prospective Zoomin Groomin franchisee should refer to the full FDD document, specifically the section containing the financial statements, or directly ask the franchisor for the page numbers where the notes to the financial statements are located.