Do the C3 Wellness Spa financial statements include an income statement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Aryes Franchising, LLC Notes To Financial Statements December 31, 2023 and 2022
1. COMPANY AND NATURE OF OPERATIONS
Aryes Franchising, LLC (the "Company") is a limited liability Company that was established in the state of Florida on December 09, 2020, for the purpose of offering franchise opportunities to entrepreneurs who want to own and operate their private business as a franchise. The Company offers qualified individuals the right to operate a business that provides a holistic wellness spa that provides massage, facials, physical therapy, acupuncture, yoga, and Medi-spa consultations in the US under the "C3 Wellness" mark.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company's financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements.
A. Basis of Accounting
The Company's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
B. Cash and Cash Equivalents
For purposes of the Statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less to be cash equivalents.
C. Accounts Receivable
Accounts Receivable arise primarily from initial franchise fees, royalties and brand fund are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. The Company provides an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, existing economic conditions, and other relevant factors. The Company has determined that no allowance for doubtful accounts was necessary on December 31, 2023, and 2022.
D. Federal Income Taxes
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa FDD, the financial statement notes included in Item 23 refer to the Aryes Franchising, LLC financial statements for December 31, 2023, and 2022. These notes summarize significant accounting policies and mention that the financial statements were prepared according to generally accepted accounting principles (GAAP). However, the excerpt focuses on the basis of accounting, cash and cash equivalents, accounts receivable, and federal income taxes.
While the notes discuss the company's accounting policies and practices, they do not explicitly state whether an income statement is included as part of the financial statements. The excerpt confirms the financial statements' adherence to GAAP but does not detail the specific financial statements presented.
A prospective C3 Wellness Spa franchisee should review Item 21 in the FDD, which contains the franchisor's audited financial statements, to determine if an income statement is included. If the income statement is not included, the franchisee should ask the franchisor to provide it.