Does C3 Wellness Spa provide audited financial statements in the FDD?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the financial information provided regarding the company-owned outlets was not prepared following generally accepted accounting principles. The FDD states that the data is based on information reported by an affiliate and has not been audited. C3 Wellness Spa had two operational company-owned outlets during the 2023 calendar year.
This means that the financial performance data presented in Item 19 of the FDD, which franchisees might use to estimate their potential earnings, has not been verified by an independent auditor. Prospective franchisees should be aware that the figures provided are based on historical data from company-owned outlets and should not be considered a guarantee or forecast of future financial performance.
It is common practice for franchisors to include audited financial statements in their FDD to provide potential franchisees with a higher level of assurance regarding the franchisor's financial stability. The absence of audited statements for C3 Wellness Spa's financial performance data may increase the risk for franchisees, as the information has not been independently verified. Therefore, prospective franchisees should conduct their own due diligence and possibly consult with a financial advisor to assess the reliability of the financial performance representations.