What statements related to retained earnings are included in the Degree Wellness financial statements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
-----| | PROFESSIONAL CORPORATION | MANAGED SERVICE ORGANIZATION | | By: | By: | | Name: WELLNESS PROVIDER THERAPIES, | Name: [FRANCHISEE ENTITY NAME] | | P.A. | Title: | | Title: Chief Executive Officer | Chief Executive Officer |
Item 21
FINANCIAL STATEMENTS
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 company's audited balance sheets as of December 31, 2024, include related statements of income, retained earnings, and cash flow for the years then ended. However, because Degree Wellness has not been in business for three years or more, the FDD does not include all the financial statements typically required.
Specifically, the independent auditor's report mentions that the audit of Degree Wellness Franchise, LLC, includes the balance sheet as of December 31, 2024, and related statements of earnings and members' equity (deficit) and cash flows for the period April 1, 2024, through December 31, 2024. This indicates that the statement of retained earnings is included within the broader statement of members' equity (deficit).
For a prospective franchisee, this means that while full historical financial data is limited due to the company's short operating history, the available statements do provide a snapshot of the company's financial position and performance during its initial period of operations. It is important for potential franchisees to carefully review these statements and consider the limited operating history when assessing the financial viability of the Degree Wellness franchise opportunity. They should also seek clarification from Degree Wellness regarding any questions or concerns about the financial statements.