What is the significance of the Punch King Fitness fiscal year end date?

According to the 2024 Punch King Fitness FDD, the franchise's fiscal year end is December 31st. This date is important for several reasons. First, Punch King Fitness's financial statements, such as the balance sheet and statements of income, retained earnings, and cash flows, are prepared as of this date. These statements provide a snapshot of the company's financial position and performance at the end of the year.

Second, the independent auditor's report included in the FDD is based on an audit of the financial statements as of December 31, 2022. The auditor's opinion states whether the financial statements present fairly the financial position of Punch King Fitness in accordance with accounting principles generally accepted in the United States of America. This audit provides potential franchisees with an independent assessment of the company's financial health.

Finally, the fiscal year-end date is relevant for determining the period covered by various disclosures in the FDD, such as the list of franchisees who have terminated or not renewed their agreements during the most recently completed fiscal year. This information helps prospective franchisees understand the turnover rate within the Punch King Fitness franchise system. Therefore, understanding Punch King Fitness's fiscal year end is crucial for interpreting the financial and operational data presented in the FDD.