What timeframe is Fly Fitness management required to consider when evaluating the company's ability to continue as a going concern?

According to Fly Fitness's 2024 Franchise Disclosure Document, management must evaluate the company's ability to continue as a going concern. This evaluation requires Fly Fitness management to consider conditions or events that could raise substantial doubt about the company's ability to continue operating. The period that Fly Fitness management must consider for this evaluation is within one year after the date that the financial statements are available to be issued.

This requirement ensures that Fly Fitness regularly assesses its financial health and viability. By looking at least one year ahead, the company can identify potential risks and challenges that could impact its ability to continue operating. This forward-looking assessment is a standard practice in financial reporting and helps stakeholders, including potential franchisees, make informed decisions.

For a prospective Fly Fitness franchisee, this information indicates that the company's management is actively monitoring the financial stability of the franchise system. It provides a degree of confidence that Fly Fitness is taking steps to ensure its long-term sustainability. Franchisees should review the financial statements and any related disclosures to understand the company's assessment of its going concern status and any potential risks identified by management.