Are the Aira Fitness financial statements presented according to a specific fiscal year?
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 21 — **FINANCIAL STATEMENTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Aira Fitness 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 indicates that the financial data presented in the FDD, such as the balance sheets and profit and loss statements, cover the period from January 1 to December 31 for each of the years presented. This standardization helps in comparing financial performance across different years and aligns with common business practices.
Furthermore, Aira Fitness franchisees are required to furnish monthly and annual reports, including profit and loss statements and balance sheets, based on the calendar year. This ensures consistency in financial reporting across all franchise locations, allowing Aira Fitness to effectively monitor and manage the financial health of its franchise system.