Does the Aira Fitness FDD include a statement of retained earnings?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
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.
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.
AIRA FITNESS FRANCHISING LLC
Financial Statements For The Years Ended December 31, 2023 & December 31, 2022 TOGETHER WITH INDEPENDENT ACCOUNTANT AUDIT REPORT
TABLE OF CONTENTS
Source: Item 21 — **FINANCIAL STATEMENTS (FDD pages 58–59)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness FDD excerpts, it is not possible to definitively confirm whether a statement of retained earnings is included. While the excerpts discuss financial statements and accounting policies, they do not explicitly mention a statement of retained earnings.
The excerpts from Item 23 describe the financial reporting requirements for franchisees, including the use of a prescribed bookkeeping system, submission of periodic reports, and the potential requirement to use a standard chart of accounts. Franchisees must provide monthly profit and loss statements and balance sheets, as well as year-end balance sheets and annual profit and loss statements. The FDD also mentions that the Aira Fitness Franchising LLC's financial statements for 2023 and 2022 are included, along with an independent accountant's audit report and a table of contents.
However, without a direct reference to a "statement of retained earnings" in the provided excerpts, it remains unclear if this specific financial statement is part of the financial disclosures. A prospective franchisee should review the full FDD, including the financial statements, to determine if a statement of retained earnings is present. If it is not included, they should ask Aira Fitness directly for this information to gain a more complete understanding of the company's financial position.