Has Fly Fitness identified any significant tax positions that it believes would not be sustained under examination?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company reviews and assesses its tax positions taken or expected to be taken in its tax returns. Based on this assessment, the Company determines whether it is more likely than not that the positions would be sustained under examination by the taxing authorities. The Company's assessment has not identified any significant positions that it believes would not be sustained under examination.
The Company's income tax returns for 2021, 2022 and 2023 remain subject to possible examination by the Internal Revenue Service, generally for three years after they are filed.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness Franchise LLC reviews its tax positions to determine if they would be sustained under examination by taxing authorities. The company's assessment has not identified any significant positions that it believes would not be sustained under examination.
For a Fly Fitness franchisee, this indicates that Fly Fitness believes it has taken reasonable and supportable positions on its tax returns. This reduces the risk that the franchisee will face additional tax liabilities or penalties due to adjustments made during an audit of Fly Fitness.
The company's income tax returns for 2021, 2022, and 2023 remain subject to possible examination by the Internal Revenue Service, generally for three years after they are filed.