What accounting principles must Angry Chickz franchisees follow when preparing financial statements?

According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees must adhere to specific accounting practices. Specifically, franchisees are required to maintain an accounting and record-keeping system that aligns with generally accepted accounting principles and sound business practices. This system should provide the necessary accounting information to prepare financial statements, a general ledger, and reports as required by the Franchise Agreement and the Manual(s).

In practical terms, this means an Angry Chickz franchisee must set up and maintain their financial records in a way that complies with GAAP (Generally Accepted Accounting Principles). GAAP is a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). This ensures consistency and comparability in financial reporting.

Furthermore, the franchisee must maintain accurate, adequate, and verifiable books and supporting documentation related to all accounting information. This implies that all financial transactions must be properly documented and readily available for review or audit. Angry Chickz also requires franchisees to submit financial statements, including a balance sheet and profit and loss statement, in a form and manner prescribed by Angry Chickz and in accordance with generally accepted accounting principles.