Are the Fat Shack financial statements audited?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
MUHAMMAD ZUBAIRY, CPA PC
Certified Public Accountant 646.327.7013
INDEPENDENT AUDITOR'S REPORT
To the Stockholders of Fat Shack Inc. and Subsidiary
Opinion
We have audited the financial statements of Fat Shack Inc. and Subsidiary, which comprises the balance sheet as of December 31, 2024, 2023 and 2022 and the related statement of operations, and changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Fat Shack Inc. and Subsidiary as of December 31, 2024, 2023 and 2022 and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Fat Shack Inc. and Subsidiary, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — Financial Statements (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the financial statements of Fat Shack Inc. and Subsidiary are indeed audited. An independent auditor's report from Muhammad Zubairy, CPA PC, is included, covering the balance sheets as of December 31, 2024, 2023, and 2022, along with related statements of operations, changes in stockholders' equity, and cash flows for the years then ended.
The auditor's opinion states that the financial statements present fairly, in all material respects, the financial position of Fat Shack Inc. and Subsidiary as of December 31, 2024, 2023, and 2022, and the results of its operations and cash flows for those years, in accordance with accounting principles generally accepted in the United States of America. The audits were conducted following auditing standards generally accepted in the United States of America (GAAS).
This audit provides prospective Fat Shack franchisees with a level of assurance that the financial information presented by Fat Shack has been examined by an independent professional and conforms to standard accounting practices. This is important for making informed investment decisions, as it adds credibility to the financial data provided in the FDD. Furthermore, the audit assesses Fat Shack's ability to continue as a going concern within one year after the financial statements are issued, offering insight into the company's financial stability.