How must the financial statements submitted by an Angry Chickz franchisee be prepared?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ified 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. Upon Company's request, Franchisee shall submit to Company a copy its signed federal, state and local income tax forms for the year(s) requested by Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees must adhere to specific guidelines when submitting financial statements. Each month, franchisees must submit financial statements, including a balance sheet and profit and loss statement, to Angry Chickz by the 20th day following the end of the calendar month or other fiscal period designated by Angry Chickz. These statements must be prepared in the form and manner prescribed by Angry Chickz and in accordance with generally accepted accounting principles. An officer of the franchisee must certify the accuracy and completeness of these statements.
In addition to monthly financial statements, 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 Angry Chickz. This annual statement must also be prepared in accordance with generally accepted accounting principles and in a form reasonably required by Angry Chickz. Similar to the monthly statements, an officer of the franchisee must certify the accuracy and completeness of the annual statement.
Furthermore, Angry Chickz franchisees are obligated 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 for preparing financial statements, a general ledger, and reports as required by the Franchise Agreement and the Manual(s). Franchisees must also maintain accurate, adequate, and verifiable books and supporting documentation related to this accounting information, retaining these records for at least 7 years following the end of each fiscal year, or longer if required by applicable law. This level of detail and adherence to standards ensures that Angry Chickz can effectively monitor the financial health and performance of its franchise locations.