Does the FDD include pro forma financial statements for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
BASES AND ASSUMPTIONS
The financial information was not prepared on a basis consistent with generally accepted accounting principles. Data for our Company Owned Outlets is based on information reported to us by our affiliate. During the 2023 Calendar Year we did not have any New Franchise Outlets or Operational Franchise Outlets. The information in this analysis has not been audited, is based on historical financial data and is not a forecast or projection of future financial performance.
ANALYSIS OF RESULTS OF COMPANY-OWNED OUTLETS
During the 2023 Calendar Year, we had a total of two Operational Company Owned Outlets, which are described below:
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, it is not clear whether C3 Wellness Spa provides pro forma financial statements. While Item 19 discusses financial performance representations, it focuses on definitions, bases and assumptions, and analysis of results for company-owned outlets.
Specifically, the document states that the financial information provided was not prepared according to generally accepted accounting principles and is based on historical data rather than future projections. The analysis includes data from two operational company-owned outlets during the 2023 calendar year.
However, the FDD does not explicitly state whether pro forma financial statements are included or excluded. A pro forma financial statement is a projection of future financial performance, which differs from the historical data presented in Item 19. Therefore, prospective franchisees should directly ask C3 Wellness Spa whether they provide pro forma financial statements to aid in their financial planning and decision-making process.