Does the Degree Wellness Franchise Disclosure Document include statements of cash flow?

According to Degree Wellness's 2025 Franchise Disclosure Document, the financial statements attached as Exhibit G include audited balance sheets as of December 31, 2024, and related statements of income, retained earnings, and cash flow for the years then ended. The inclusion of a cash flow statement provides insight into how Degree Wellness generated and used cash during the reporting period. This is a standard component of financial reporting, offering transparency into the company's operational, investing, and financing activities.

However, Degree Wellness notes that because it has not been in business for three years or more, it cannot include all the financial statements typically required by the FTC Franchise Rule. This is a common situation for newer franchisors. While the provided statements offer a snapshot of Degree Wellness's financial standing, the limited operating history may restrict a comprehensive trend analysis.

Prospective franchisees should carefully review these financial statements, paying close attention to the cash flow statement to understand the company's liquidity and financial stability. It is also advisable to seek professional financial advice to fully assess the implications of the limited financial history and the data presented. Understanding Degree Wellness's cash flow situation is crucial for evaluating the financial health and sustainability of the franchise system.