Instead of submitting statements of condition, what alternative does an Annex Brands franchisee have regarding financial statements?

According to the 2025 FDD, an Annex Brands franchisee has an alternative to submitting personal financial statements. Instead of self-certifying their financial condition, the franchisee can elect to have their financial statements prepared by a Certified Public Accountant (CPA). This option allows for a professional assessment of the franchisee's finances.

This alternative provides a level of assurance to Annex Brands regarding the accuracy and reliability of the financial information. While the franchisee bears the expense of hiring a CPA, it may be beneficial if they lack confidence in preparing the statements themselves or prefer a professional opinion. It is common practice in franchising for franchisors to require financial reporting from franchisees to monitor their financial health and ensure compliance with the franchise agreement.

Choosing to have a CPA prepare the financial statements ensures that the reports meet professional standards and are free from material misstatements. This can be particularly important when dealing with complex financial situations or if the franchisee anticipates scrutiny from Annex Brands. The franchisee should weigh the cost of hiring a CPA against the potential benefits of increased accuracy and credibility when deciding whether to pursue this option.