What certification is required for the Gross Sales report 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, the Gross Sales report that a franchisee submits must be certified by an officer of the franchisee. Specifically, on or before the 20th day following each calendar month (or other fiscal period designated by Angry Chickz), the franchisee must submit a Gross Sales report. This report, in the form prescribed by Angry Chickz, must be certified by an officer of the franchisee to be accurate and complete. The report should include all Gross Sales for the preceding calendar month or other designated fiscal period, along with any additional financial information requested by Angry Chickz, such as cost of goods sold, labor costs, customer information, sales by day-part, and sales by customer type.
Additionally, the franchisee is required to submit financial statements to Angry Chickz for each calendar month (or other fiscal period), including a balance sheet and profit and loss statement. These statements must be prepared in the form and manner prescribed by Angry Chickz, following generally accepted accounting principles, and must also be certified by an officer of the franchisee as accurate and complete. Furthermore, within 120 days after the end of each calendar year (or other fiscal period), the franchisee must submit an unaudited annual financial statement, prepared in accordance with generally accepted accounting principles, and certified by an officer of the franchisee.
These requirements ensure that Angry Chickz receives accurate and reliable financial information from its franchisees, allowing the company to monitor performance, develop chain-wide statistics, and improve the overall operation of the franchise system. The certification by an officer of the franchisee adds a layer of accountability and helps to ensure the integrity of the reported data. This is a fairly standard practice in franchising, as franchisors need accurate financial data to calculate royalties, assess the financial health of individual units, and make informed business decisions at the corporate level.