Does the Aira Fitness FDD include a cash flow statement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will furnish to us at our request the following reports in the manner and the time we designate: monthly profit and loss statement and balance sheet; calendar year-end balance sheet and an annual profit and loss statement for the calendar year reflecting all year-end adjustments; all state and local sales tax returns and all federal, state and local income tax returns; reports on membership; and such other reports as we may require from time to time.
Source: Item 21 — **FINANCIAL STATEMENTS (FDD pages 58–59)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document excerpts, there is no explicit mention of a cash flow statement being included in Item 23. However, the document does state that franchisees must furnish monthly profit and loss statements and balance sheets, as well as calendar year-end balance sheets and annual profit and loss statements to Aira Fitness at their request. Franchisees are also required to use a bookkeeping, accounting, and record-keeping system prescribed by Aira Fitness.
While a cash flow statement isn't specifically mentioned, the FDD emphasizes the importance of accurate financial reporting and record-keeping. Aira Fitness retains the right to audit a franchisee's business operations, records, and reports, excluding employment records. If an audit reveals an understatement of Gross Sales exceeding two percent (2%), the franchisee is responsible for covering the audit costs, including attorney and accountant fees.
Prospective franchisees should inquire with Aira Fitness about whether a cash flow statement is required as part of their regular financial reporting. Understanding the full scope of required financial documents will help franchisees maintain compliance and manage their business effectively. It is also important to understand what accounting system is required and if there is an approved vendor that provides this service.