Are there any notes to the financial statements for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
,739 | | Net Change In Cash And Cash Equivalent During The Year Cash and cash equivalent - beginning of the year | | 39,115 | | - 17,739 | | Cash And Cash Equivalent - End of The Year | $ | 39,115 | $ | |
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
The Company is organized as a limited liability Company and is a disregarded entity for income tax purposes. The Company's accounts are included in the tax return of its members, and all taxes are assessed and paid at the individual member level. Therefore, no income tax liability for federal or state taxes has been recorded in the financial statement.
E.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, C3 Wellness Spa's financial statements have associated notes. These notes are included to help readers understand and evaluate the company's financial statements. The notes confirm that the financial statements are the responsibility of the company's management. They also state that the accounting policies used conform to generally accepted accounting principles (GAAP).
The notes include a summary of significant accounting policies, such as the basis of accounting, which is in conformity with GAAP. They also define cash equivalents as bank accounts and cash in transit for bank deposits with maturities of three months or less. The notes also address how accounts receivable are handled, stating that they are carried at their estimated collectible amounts, net of any allowances for doubtful accounts. As of December 31, 2023, and 2022, C3 Wellness Spa determined that no allowance for doubtful accounts was necessary.
Additionally, the notes provide information on advertising expenses, which were $0 for the year ended December 31, 2023, and $12,875 for the year ended December 31, 2022. Finally, the notes address subsequent events, stating that management evaluated events through April 19, 2024, and found no material recognizable subsequent events that would require adjustment to or disclosure in the financial statements. These notes are standard practice in financial reporting to provide additional context and detail about the figures presented in the financial statements.