Are the Fat Shack financial statements in the FDD audited or unaudited?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor's audited financial statements for the most recently ended fiscal year are included as Attachment I to the Franchise Disclosure Document.
Wisconsin Division of Securities March 31, 2025 Page 2
Source: Item 21 — Financial Statements (FDD pages 52–53)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisor includes audited financial statements. Item 23 states that Fat Shack's audited financial statements for the most recently ended fiscal year are included as an attachment to the FDD.
An independent auditor's report is included in the FDD. The report states that Muhammad Zubairy, CPA PC, has 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.
The auditor's opinion is 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 its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
It is typical for franchisors to include audited financial statements in their FDDs. Audited statements provide more assurance to potential franchisees than unaudited ones, as they have been reviewed by an independent CPA.