Are the Fat Shack financial statements presented on a calendar year basis?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
f 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).
Source: Item 21 — Financial Statements (FDD pages 52–53)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the financial statements for both the franchisor and the franchisee are based on a calendar year. The independent auditor's report for Fat Shack Inc. covers the balance sheets as of December 31, 2024, 2023, and 2022, and the related statements of operations, changes in stockholders' equity, and cash flows for the years then ended. This indicates that Fat Shack Inc.'s financial reporting follows a calendar year-end.
Furthermore, Fat Shack requires franchisees to submit financial reports, including an income statement within 15 days after each month's end and for the fiscal year-to-date. More specifically, franchisees must provide an income statement and balance sheet for their Fat Shack restaurant within 90 days after the end of their fiscal year, which is explicitly stated to be the calendar year. These financial statements must adhere to generally accepted accounting principles (GAAP) and be in a format recommended by Fat Shack.
This requirement ensures that Fat Shack receives consistent financial data from all its franchisees, allowing for standardized performance analysis and comparison across the franchise system. A prospective franchisee should be aware of these reporting obligations and ensure they can comply with the specified deadlines and accounting standards. Failure to provide these financial statements in a timely manner may lead to the franchisee being required to use a bookkeeping service designated by Fat Shack.