Where are the financial statements for Punch King Fitness located in the FDD?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
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 Punch King Fitness's 2024 Franchise Disclosure Document, the financial statements are included in Item 22, which covers contracts. The FDD indicates that because Punch King Fitness has not been in business for three years or more, they cannot include all the financial statements typically required.
It is important to note that the financial statements included in the FDD are unaudited. The document explicitly advises prospective franchisees to be aware that no certified public accountant has audited these figures or expressed an opinion on their content or form. This lack of an audit could mean that the financial information has not been independently verified for accuracy.
Prospective franchisees should carefully review these unaudited financial statements and consider the implications of their unaudited status. It would be prudent to consult with a financial advisor to discuss the financial health of Punch King Fitness and the risks associated with investing in a franchise based on unaudited financials. Understanding the franchisor's financial position is crucial for making an informed investment decision.