What certification is required for the financial statements submitted by an Angry Chickz franchisee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
10.1.2 On or before the 20th day following each calendar month or other fiscal period designated by Company, Franchisee shall submit a Gross Sales report prescribed by Company, which shall be certified by an officer of Franchisee to be accurate and complete, reporting all Gross Sales for the preceding calendar month or other fiscal period designated by Company, as applicable, together with such additional financial information as Company may request, including cost of goods sold, labor costs, customer information, sales by day-part, sales by customer type.
10.1.3 On or before the 20th day following each calendar month or other fiscal period designated by Company, Franchisee shall submit to Company financial statements for the preceding calendar month or other fiscal period designated by Company, including a balance sheet and profit and loss statement, prepared in the form and manner prescribed by Company and in accordance with generally accepted accounting principles, which shall be certified by an officer of Franchisee to be accurate and complete.
10.1.4 Within 120 days following the end of each calendar year and/or other fiscal period designated by Company, Franchisee shall submit to Company an unaudited annual financial statement prepared in accordance with generally accepted accounting principles.
Such statement shall be in the form reasonably required by Company, which shall be certified by an officer of Franchisee to be accurate and complete.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees must submit various financial reports to the company. For monthly financial statements, including a balance sheet and profit and loss statement, these must be certified by an officer of the franchisee to be accurate and complete. These statements must be prepared in the form and manner prescribed by Angry Chickz and in accordance with generally accepted accounting principles.
In addition to the monthly reports, Angry Chickz franchisees are also required to submit an unaudited annual financial statement within 120 days following the end of each calendar year or other fiscal period designated by the company. Similar to the monthly statements, this annual statement must be prepared in accordance with generally accepted accounting principles and certified by an officer of the franchisee to be accurate and complete. The statement should be in a form reasonably required by Angry Chickz.
These requirements ensure that Angry Chickz receives consistent and reliable financial data from all its franchise locations. This allows them to monitor performance, develop chain-wide statistics, and assist franchisees in operating their businesses effectively. The certification by an officer of the franchisee adds a layer of accountability to the accuracy of the reported financial information. Franchisees should ensure they have proper accounting systems in place to meet these reporting obligations.