Who must certify the financial reports submitted to Punch King Fitness?

According to Punch King Fitness's 2024 Franchise Disclosure Document, the financial statements included in the document were prepared without an audit. The FDD explicitly advises prospective franchisees that no Certified Public Accountant has audited these figures or expressed an opinion regarding their content or form.

This indicates that the financial statements provided by Punch King Fitness in this FDD have not been certified by an independent auditor. This is because Punch King Fitness has not been in business for three years or more and, therefore, cannot include all financial statements required.

Prospective franchisees should be aware that the absence of an audit means the financial information has not been independently verified for accuracy or compliance with accounting standards. This increases the risk that the financial data may contain errors or not present a completely accurate picture of Punch King Fitness's financial condition. It is common practice for established franchisors to provide audited financial statements to ensure transparency and build trust with potential franchisees.

Given the lack of audited financials, it is crucial for potential Punch King Fitness franchisees to conduct thorough due diligence. This includes carefully reviewing the provided financial statements, seeking advice from a financial professional, and asking Punch King Fitness detailed questions about their financial performance and accounting practices. Understanding the limitations of unaudited financials is essential for making an informed investment decision.