South Dakota Codified Laws
Chapter 05B - Franchise Investment
Section 37-5B-9 - Phase-in of financial statements.

37-5B-9. Phase-in of financial statements.
For the purposes of §37-5B-7, a start-up franchisor may phase-in the disclosure of audited financial statements, if the franchisor:
(1)Prepares audited financial statements as soon as practicable;
(2)Prepares unaudited statements in a format that conforms as closely as possible to audited statements; and
(3)Includes one or more years of unaudited financial statements or clearly and conspicuously discloses in the disclosure document that the franchisor has not been in business for three years or more, and cannot include all of the financial statements required in the disclosure document such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years.

Source: SL 2008, ch 203, §9.

Structure South Dakota Codified Laws