For what years are the audited financial statements provided for Fat Shack in this FDD?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 21 — Financial Statements (FDD pages 52–53)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the audited financial statements included cover the fiscal years 2022, 2023, and 2024. This means that an independent CPA has examined Fat Shack Inc. and Subsidiary's balance sheets as of December 31 for each of these years, along with their statements of operations, changes in stockholder equity, and cash flows for those years.
An independent auditor's report offers an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Fat Shack in accordance with generally accepted accounting principles (GAAP). The auditor conducts their audit following generally accepted auditing standards (GAAS) to ensure the financial statements are free from material misstatement.
Prospective franchisees should carefully review these audited financial statements and the accompanying notes to understand Fat Shack's financial performance and stability over the past three years. This information can help in assessing the overall financial health of the company and its ability to support its franchisees. It is common practice for franchisors to include several years of audited financial statements in their FDDs to provide potential franchisees with a comprehensive view of the company's financial history.