Are the Alloy financial statements prepared according to GAAP?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
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In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Alloy Personal Training, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, also known as U.S. GAAP. This indicates that Alloy adheres to a standardized set of accounting rules and guidelines when creating its financial reports.
Furthermore, Alloy's FDD includes an independent auditor's report which expresses an opinion on the fairness of the financial statements. The auditor states that the financial statements of Alloy Personal Training, LLC present fairly, in all material respects, the financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America. This opinion provides assurance that the financial statements are reliable and have been audited according to generally accepted auditing standards.
For a prospective franchisee, this is important because it suggests that Alloy's financial reporting is transparent and reliable. It allows potential franchisees to have confidence in the financial information provided in the FDD, which is crucial for making informed investment decisions. The use of U.S. GAAP and an independent audit are standard practices for established franchisors, adding credibility to Alloy's financial disclosures.