Are the financial statements for Punch King Fitness included as part of the disclosure document?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
FINANCIAL STATEMENTS
TO THE PUNCH KING FITNESS FRANCHISE DISCLOSURE DOCUMENT
The franchisor has not been in business for three years or more; and, therefore, cannot include all financial statements required.
THESE FINANCIAL STATEMENTS ARE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 FDD, Punch King Fitness includes its financial statements as part of the disclosure document. However, because Punch King Fitness has not been in business for at least three years, the franchisor states that it cannot include all the financial statements normally required.
The FDD also contains an Independent Auditor's Report. This report includes the auditor's opinion that the financial statements of Punch King Fitness, Inc. present fairly, in all material respects, the company's balance sheet as of December 31, 2022, and the related statements of income and retained earnings and cash flows for the year then ended, and the related notes to the financial statements.
It is important to note that the financial statements included in the FDD are unaudited. The FDD advises prospective franchisees to be aware that no Certified Public Accountant has audited these figures or expressed an opinion regarding their content or form. This lack of an audit could mean a higher risk of inaccuracies in the financial data. Prospective franchisees should carefully review these statements and consider consulting with a financial advisor to fully understand the financial health of Punch King Fitness.