Are the Aira Fitness financial statements consolidated?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Management of AIRA FITNESS FRANCHISING LLC
Opinion
We have audited the financial statements of AIRA FITNESS FRANCHISING LLC (the "Company"), which comprise the Balance Sheet as of December 31, 2024 & December 31, 2023 & December 31, 2022, the related Profit & Loss Statements, the related Statements of Cashflows, the related Statements of Shareholders' Equity, and the related notes for the twelve-month periods then ended. (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 & December 31, 2023 & December 31, 2022, and the results of its operations and its cash flows for the twelve-month periods then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — **FINANCIAL STATEMENTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the financial statements provided are for AIRA FITNESS FRANCHISING LLC as a single entity. The independent accountant's audit report explicitly states that they audited the financial statements of AIRA FITNESS FRANCHISING LLC, which include the balance sheets, profit & loss statements, statements of cash flows, statements of shareholders' equity, and related notes for specific periods.
This indicates that the financial statements presented in the FDD are not consolidated. Consolidated financial statements would include the combined financial results of a parent company and its subsidiaries. In this case, the statements only reflect the financial position and performance of Aira Fitness Franchising LLC itself.
For a prospective franchisee, this means the financial performance represented is solely that of the franchisor entity, Aira Fitness Franchising LLC, and does not include any revenue or expenses from franchisee-owned locations or other related business entities. It is important for potential franchisees to understand this when evaluating the financial health and stability of Aira Fitness as a franchise system. To gain a comprehensive understanding of the entire Aira Fitness system, a franchisee may want to ask for information about the financial performance of representative franchise locations.