Who must certify the accuracy and completeness of 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, an officer of the franchisee must certify the accuracy and completeness of financial statements submitted to the company. This requirement applies to the monthly Gross Sales reports, monthly financial statements (including balance sheets and profit and loss statements), and the annual unaudited financial statement.
This means that if the franchisee is a corporation, LLC, or other business entity, one of its officers (e.g., CEO, CFO, President, Treasurer) must personally vouch for the accuracy of the financial data. This certification holds the officer accountable for the information provided to Angry Chickz, ensuring that the data is reliable for monitoring the franchisee's performance and for developing chain-wide statistics.
This requirement is a standard practice in franchising, as franchisors rely on accurate financial reporting from franchisees to manage the overall health and performance of the brand. The certification by a company officer adds a layer of responsibility and helps to ensure that the financial information is carefully reviewed before submission. Franchisees should ensure their financial record-keeping is meticulous and accurate to avoid any issues related to this certification.