For what year are the statements of income, retained earnings, and cash flow included for Degree Wellness?
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 statements of income, retained earnings, and cash flow are included for the year ending December 31, 2024. The financial statements also include an audited balance sheet as of December 31, 2024. Additionally, the auditor's report covers the period from April 1, 2024, through December 31, 2024, for the statements of earnings and members' equity (deficit) and cash flows.
Degree Wellness Franchise, LLC was formed in February 2024, and its operations primarily involve selling and supporting wellness lounge franchises. Because Degree Wellness was formed in February 2024, the company has not been in business for three years or more.
Due to the company's recent formation, Degree Wellness cannot include all the financial statements typically required by the FTC Franchise Rule. This is a common situation for newer franchisors, and prospective franchisees should focus on understanding the available financial data and ask the franchisor for additional information or projections to assess the financial viability of the franchise.