As of what date is the audited balance sheet for Degree Wellness Franchise, LLC included in the FDD?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this Franchise Disclosure Document as Exhibit G are:
Degree Wellness Franchise, LLC's audited balance sheets as of December 31, 2024, and the related statements of income, retained earnings, and of cash flow for the years then ended. We have not been in business for three years or more and cannot include all the financial statements required by the Rule
Our fiscal year end is December 31. The Franchisor has not been in business for three years or more, and cannot include all financial statements required by the FTC Franchise Rule.
Source: Item 21 — Financial Statements (FDD page 66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the audited balance sheet for Degree Wellness Franchise, LLC is as of December 31, 2024. The FDD includes Degree Wellness Franchise, LLC's audited balance sheets as of this date, along with related statements of income, retained earnings, and cash flow for the years then ended, as Exhibit G. Degree Wellness has not been in business for three years or more, so they cannot include all the financial statements typically required.
This means that prospective franchisees reviewing the 2025 FDD can examine the company's financial position as of the end of 2024. These statements offer insights into the company's assets, liabilities, and equity at that specific point in time. The accompanying statements of income, retained earnings, and cash flow provide a view of the company's financial performance over the period leading up to that date.
Because Degree Wellness has been operating for less than three years, the FDD does not include a complete set of historical financial statements. This is a common situation for newer franchise systems. Potential franchisees should carefully review the available financial statements and consider seeking professional financial advice to fully understand the franchisor's financial condition and performance history.