Who must prepare the annual statements and balance sheets for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| FRANCHISOR: |
|---|
| FLY FITNESS FRANCHISE, L.L.C. |
| By: |
| , |
| (Print Name, Title) |
| FRANCHISEE (Entity): |
| By: |
| , |
| (Print Name, Title) |
| FRANCHISEE (Principal): |
| (Print Name) |
| FRANCHISEE (Principal): |
| (Print Name) |
EXHIBIT G
FLY FITNESS ACKNOWLEDGEMENT STATEMENT
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
1.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, it is not explicitly stated who is responsible for preparing the annual statements and balance sheets for a Fly Fitness franchise. The document includes exhibits such as the Franchise Agreement, Multi-Unit Development Agreement, and Financial Statements, but it does not specify the requirements or responsibilities for franchisees to prepare financial documents.
Item 22 includes a list of contracts and exhibits, but none of the listed exhibits appear to outline the specific requirements for financial reporting or the preparation of financial statements by the franchisee. The FDD does mention that franchisees must conduct an independent investigation of all aspects relating to the financial, operational, and other aspects of the business of operating the Franchised Business.
Therefore, a prospective Fly Fitness franchisee should directly ask the franchisor about the requirements for preparing annual statements and balance sheets. This inquiry should include whether the franchisee can prepare these documents themselves, if they are required to hire a professional accountant, and if Fly Fitness provides any specific guidelines or templates for financial reporting.