What is the basis of reporting (fiscal year) adopted by Aira Fitness for its financial statements?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As a result, the Company records revenue when earned and expenses when incurred. The Company has adopted the calendar year as its basis of reporting.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the company has adopted the calendar year as its basis of reporting. This means that Aira Fitness's financial statements are prepared using a fiscal year that aligns with the calendar year, beginning on January 1 and ending on December 31.
For a prospective franchisee, this is relevant because it sets the standard for how Aira Fitness tracks and reports its financial performance. Franchisees may need to align their own accounting practices with this calendar year basis to ensure consistency when reporting financial information to the franchisor.
Furthermore, Aira Fitness requires franchisees to furnish monthly and annual reports, including profit and loss statements and balance sheets, based on the calendar year. This standardization helps Aira Fitness in assessing the overall financial health and performance of its franchise system.