For Punch King Fitness, on what pages are the Notes to Financial Statements located?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 1 Organization and Summary of Significant Accounting Policies
Organization and Nature of Business
The Company was incorporated under the laws of the State of California for the purpose of offering franchise opportunities to entrepreneurs owning their own Punch King Fitness operation as a franchise.
Revenue Recognition
The Company recognizes revenue from franchise fees when the company provides the initial agreed upon services and the franchisee has commenced operations. The Company recognizes revenue from franchise royalty fees during the term of the franchise agreement.
Subscription Receivable
Subscription receivables are stated at cost, less an allowance for doubtful accounts. On a periodic basis, management evaluates subscription receivable balances and establishes an allowance for doubtful accounts based on history of past write-offs, collections and current credit considerations.
Cash and Cash Equivalents
For purpose of the statement of cash flows, the Company considers all instruments with an original maturity of three months or less to be cash equivalents.
Income Taxes
No provision is made for income taxes. Taxes are paid by the shareholders on their personal returns with the expectation that any individual tax needs will be funded by distributions from Company funds.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
See Independent Auditor's Report. -7-
WDD Wittlin, Dry & Dry, LLP
Gertified Public Accountants
Note 1 Organization and Summary of Significant Accounting Policies-continued
Events Occurring After Reporting Date
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Punch King Fitness Franchise Disclosure Document, the notes to the financial statements are located on pages with image names that include _page_174, _page_175, and _page_176. These notes provide additional details and explanations regarding the financial statements of Punch King Fitness.
The notes to the financial statements include information such as the organization and summary of significant accounting policies. This section describes the nature of Punch King Fitness's business, revenue recognition practices, how subscription receivables are handled, the treatment of cash and cash equivalents, income tax policies, and the use of estimates in preparing the financial statements.
Prospective franchisees should carefully review these notes to gain a better understanding of the financial reporting practices of Punch King Fitness. Understanding these policies can help franchisees assess the financial health and stability of the company. Additionally, the notes may contain information about potential risks or liabilities that could impact the franchisee's investment.