What is the significance of KPMG's resignation in the context of Zoomin Groomin's 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 Zoomin Groomin's 2025 Franchise Disclosure Document, the resignation of KPMG as the company's independent registered public accounting firm is a significant event that necessitates forward-looking statements. These statements address the potential impacts of KPMG's resignation, the ability and timing to complete accounting reviews and audits, the comprehensiveness of the company's accounting review, and the ability to engage a new independent accounting firm. These forward-looking statements are considered under Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements.
Zoomin Groomin's forward-looking statements are based on the current expectations, estimates, projections, beliefs, and assumptions of the company's management. However, there is no guarantee that these expectations will be accurate. Actual events or results could significantly differ from those discussed in the forward-looking statements due to various risks and uncertainties. These risks include the loss of key personnel, the inability to address previously disclosed accounting matters, the identification of additional material weaknesses or significant deficiencies, and potential disagreements with KPMG that may be reported to the SEC.
Additional risks include the failure to engage a new independent accounting firm, complete necessary audits and re-audits, and file required restatements and periodic reports. The delisting of Zoomin Groomin's common stock from the Nasdaq Stock Market LLC and the substantial costs and diversion of personnel's attention and resources due to these matters and related litigation also pose risks. Prospective franchisees are cautioned against placing undue reliance on these forward-looking statements and are advised to consult Zoomin Groomin's most recent Annual Report on Form 10-K and other SEC filings for a comprehensive understanding of the risks and uncertainties that may affect the company's business and the ownership of its securities. Zoomin Groomin does not commit to updating these statements, regardless of new information or future events.