What is the date of the unaudited balance sheet provided by Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to Financial Statements December 31, 2024 and 2023
NOTE A - NATURE OF BUSINESS AND LIQUIDITY
The accompanying financial statements include the accounts of Stretch Zone Franchising, LLC (the "Company"), a wholly owned subsidiary of Stretch Zone Holdings, LLC (the "Former Parent"). The Company was organized on November 15, 2015, in the state of Florida. The Company's only business is to offer and sell franchises under the Stretch Zone name and to provide support to its health clubs across the United States. Effective March 31, 2023, the Company was sold by Stretch Zone Holdings, LLC to SZ PEP Holdco, LLC, the Acquiror (the "Parent").
On March 31, 2023, the beneficial owners of the Parent entered into a securities purchase agreement with a third party effectively selling approximately an 80% interest in the Company to the third party, with those beneficial owners retaining the approximately 20% rollover interest. This transaction resulted in a change in control of the Company, which triggered the payment of the unit appreciation rights (see Note J).
Source: Item 21 — ITEM -21 FINANCIAL STATEMENTS (FDD page 84)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the notes to the financial statements included are for December 31, 2024, and 2023. These financial statements for Stretch Zone Franchising, LLC have been audited by EisnerAmper LLP.
The independent auditor's report states that they have audited the balance sheets as of December 31, 2024 and 2023. The audit also included the related statements of operations, changes in member's deficit, and cash flows for each of the years then ended, and the related notes to the financial statements.
This information is crucial for prospective franchisees as it provides a snapshot of Stretch Zone's financial health over the past two years. Reviewing these audited financial statements, along with the notes, can help potential franchisees assess the financial stability and performance of the franchisor before making an investment decision.