What financial statement does Fly To Fit include in Exhibit F?

According to Fly To Fit's 2024 Franchise Disclosure Document, because the company has not been in business for three years or more, it cannot include all financial statements required by the Franchise Rule of the Federal Trade Commission. Instead, Exhibit F contains Fly To Fit's audited opening balance sheet dated April 15, 2024. The company's fiscal year end is December 31. This is a common situation for newer franchisors.

An audited balance sheet provides a snapshot of Fly To Fit's assets, liabilities, and equity as of a specific date. Because Fly To Fit is a newer company, the balance sheet offers insight into its initial financial position. Prospective franchisees can review this balance sheet to assess the company's financial health and stability at its early stage.

It is important to note that the balance sheet only provides a picture at one point in time. It does not show the company's financial performance over a period of time, such as through an income statement or cash flow statement. Since Fly To Fit has not been in business for three years, these statements are not included. A potential franchisee should consider this limitation and gather additional information to assess the company's ongoing financial performance and future prospects. They should ask Fly To Fit for any available financial projections or other data that can help them evaluate the franchise opportunity.