As of the date of this Fat Shack FDD, how many years of financial statements are included?

According to Fat Shack's 2025 Franchise Disclosure Document, the provided financial statements include data for three years. The Independent Auditor's Report indicates that the financial statements audited cover the balance sheets as of December 31, 2024, 2023, and 2022, along with the related statements of operations, changes in stockholders' equity, and cash flows for the years then ended. This provides prospective franchisees with a three-year view of Fat Shack's financial performance.

Having three years of financial statements allows potential franchisees to assess the financial stability and performance trends of Fat Shack over time. This information is crucial for making informed investment decisions, as it provides insights into the company's revenue, expenses, profitability, and cash flow patterns. Analyzing these trends can help franchisees evaluate the potential risks and rewards associated with investing in a Fat Shack franchise.

It is important for prospective franchisees to carefully review these financial statements and consult with a financial advisor to fully understand the implications. While the auditor's opinion suggests that the financial statements are presented fairly, franchisees should conduct their own due diligence to assess the company's financial health and future prospects. This includes examining the notes to the financial statements, which provide additional details and explanations of the company's accounting policies and financial performance.

In the franchise industry, it is common for franchisors to include several years of audited financial statements in their FDDs to provide transparency and build trust with potential franchisees. The inclusion of three years of financial data in Fat Shack's FDD aligns with this practice and offers valuable information for prospective franchisees to evaluate the franchise opportunity.