South Dakota § 37-5B-8 Start-up financial statements.

South Dakota Statutes

§ 37-5B-8 — Start-up financial statements.

South Dakota § 37-5B-8

Title 37TRADE REGULATION

Ch. 37-5BFRANCHISE INVESTMENT

This text of South Dakota § 37-5B-8 (Start-up financial statements.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 37-5B-8 (2026).

Text

For the purposes of § 37-5B-7 , a start-up franchise system that does not yet have audited financial statements, may phase-in the use of audited financial statements by providing, at a minimum, the following statements in the times indicated below:

(1)The franchisor's first partial or full fiscal year selling franchises: an unaudited opening balance sheet;

(2)The franchisor's second fiscal year selling franchises: audited balance sheet opinion as of the end of the first partial or full fiscal year selling franchises; and (3) The franchisor's third and subsequent fiscal years selling franchises: all required financial statements for the previous fiscal year, plus any previously disclosed audited statements that still must be disclosed such as the franchisor's balance sheet for th

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For the purposes of § 37-5B-7 , a start-up franchise system that does not yet have audited financial statements, may phase-in the use of audited financial statements by providing, at a minimum, the following statements in the times indicated below: (1) The franchisor's first partial or full fiscal year selling franchises: an unaudited opening balance sheet; (2) The franchisor's second fiscal year selling franchises: audited balance sheet opinion as of the end of the first partial or full fiscal year selling franchises; and (3) The franchisor's third and subsequent fiscal years selling franchises: all required financial statements for the previous fiscal year, plus any previously disclosed audited statements that still must be disclosed 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.