Are the financial results presented for Fly Fitness franchises audited?

According to Fly Fitness's 2024 Franchise Disclosure Document, the financial results presented are unaudited. Specifically, the note in Item 19 states that the revenue results from corporate outlets are unaudited. This means that the financial information provided has not been independently verified by a certified public accountant.

For a potential Fly Fitness franchisee, this implies a higher degree of risk when relying on the financial performance representations. Unaudited statements may not have the same level of accuracy or reliability as audited ones, as they have not been subjected to external scrutiny. While the FDD provides financial information, prospective franchisees should approach it with caution and conduct their own due diligence.

It is common practice in the franchise industry for franchisors to provide financial performance representations, but the level of assurance (audited vs. unaudited) can vary. Franchisees should consider engaging their own financial advisors to review the provided information and assess the potential financial viability of a Fly Fitness franchise. Additionally, the FDD states that written substantiation for the financial performance representation will be made available to prospective franchisees upon reasonable request, which could provide further clarity, though it would still be unaudited.