On what pages of the financial statements can I find the Notes to Financial Statements for Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We have audited the accompanying financial statements of Punch King Fitness, Inc., which comprise the balance sheet as of December 31, 2023, 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.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Punch King Fitness, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the notes to the financial statements are included as part of the audited financial statements. The Independent Auditor's Report for the year ending December 31, 2023, states that the audit includes "the related notes to the financial statements." Similarly, the Independent Auditor's Report for the year ending December 31, 2022, also mentions that the audit includes "the related notes to the financial statements."
Note 1, titled "Organization and Summary of Significant Accounting Policies," is found on page -7- of the financial statements. This note discusses various accounting policies employed by Punch King Fitness, such as revenue recognition, accounts receivable, cash and cash equivalents, income taxes, and the use of estimates. It also includes information about the organization and nature of the Punch King Fitness business.
Prospective franchisees should carefully review these notes to understand the accounting practices and financial assumptions used by Punch King Fitness. Understanding these policies can provide a clearer picture of the company's financial health and performance. Additionally, it is important to consult with a financial advisor to fully interpret the implications of these financial statements.