What was the reported net income before income tax for Fat Shack?
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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Fat Shack Inc. and Subsidiary's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
I am unable to provide the net income before income tax for Fat Shack, according to the 2025 Franchise Disclosure Document. While the document includes an Independent Auditor's Report and refers to audited financial statements, it does not explicitly state the net income before income tax. The auditor's report confirms that the financial statements, including the statement of operations, are fairly presented, but the specific income figure is not disclosed in this excerpt.
For a prospective franchisee, this means that this crucial profitability metric is not available in this section of the FDD. Understanding the net income before income tax is essential for assessing the financial health and potential profitability of Fat Shack.
I recommend that a prospective franchisee ask the franchisor directly for the net income before income tax figures for the years 2022, 2023, and 2024. This information will help in making an informed decision about investing in a Fat Shack franchise.