What accounting principles must Angry Chickz franchisees follow when preparing the unaudited annual financial statement?

According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees must adhere to generally accepted accounting principles when preparing their unaudited annual financial statements. Specifically, within 120 days following the end of each calendar year (or other fiscal period designated by Angry Chickz), franchisees are required to submit an unaudited annual financial statement to Angry Chickz.

This statement must be prepared in accordance with generally accepted accounting principles and presented in a format reasonably required by Angry Chickz. Furthermore, an officer of the franchisee must certify the statement as accurate and complete. This requirement ensures that Angry Chickz receives consistent and reliable financial information from all its franchise locations.

For a prospective Angry Chickz franchisee, this means they will need to either have a solid understanding of generally accepted accounting principles or hire an accountant who does. Failing to comply with these reporting standards could lead to issues with the franchisor and potential penalties. It is a common practice in franchising to require franchisees to adhere to specific accounting principles to maintain uniformity and transparency across the franchise system.