What specific reports are Annex Brands franchisees required to submit?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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11. RECORDS AND REPORTS
- A. ACCOUNTING AND RECORDS. During the term of the Franchise, Franchisee agrees to establish and maintain, at Franchisee's expense, computer-based record keeping and accounting systems conforming to the requirements periodically prescribed by Franchisor, including all point-of-sale reports, sales checks, purchase orders, invoices and cash receipts. Franchisee will capture and record customer information in a computerized database, and link each customer's transactions to it, as Franchisor specifies. All books and records of the Center will be maintained at Franchisee's principal business address, as shown on the first page of this Agreement, or as otherwise designated in writing to Franchisor.
- B. REPORTS AND TAX RETURNS. Franchisee will combine all data into periodic reports that Franchisee will send to Franchisor, electronically or otherwise, as Franchisor specifies. Franchisee will participate in Franchisor's approved electronic reporting system. Franchisee must furnish to Franchisor the following reports: 1) the statements specified in Subsection 8.B; 2) within 45 days after the end of each calendar quarter, an income statement and balance sheet for that calendar quarter; and 3) within 90 days after the end of the calendar year, annual financial statements including income statement, balance sheet, and income tax return for that calendar year. The statements will be certified by Franchisee that they accurately reflect the
financial condition of Franchisee as of the date of the statements. If Franchisee fails to submit annual reports to Franchisor as noted in this Subsection 11.B.3) herein, Franchisor may charge Franchisee a fee of $525 per document not supplied, but in no event an amount greater than $1,600 per occurrence. In lieu of such statements of condition, Franchisee may elect to have the financial statements prepared by a Certified Public Accountant at Franchisee's expense.
Franchisee will furnish to Franchisor any other periodic reports prescribed by Franchisor, and will furnish or make available (on computer disk, by modem, or other electronic means) such other information and supporting records as Franchisor may periodically prescribe, including sales information, advertising materials and supporting invoices, and reports of operating or service problems of any equipment used by the Center. All reports, financial statements (except audited statements), and information will be on forms prescribed or approved by Franchisor and will be verified and signed by Franchisee. Franchisee must maintain readily available for inspection by Franchisor, and must furnish to Franchisor upon its request, exact copies of any state sales tax returns and federal and state income tax returns filed by Franchisee that reflect the operation of the Center. Franchisor will keep confidential all financial records furnished to Franchisor by Franchisee.
12.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must furnish several reports to the franchisor. These include the statements specified in Subsection 8.B of the franchise agreement. Additionally, franchisees are required to submit an income statement and balance sheet for each calendar quarter within 45 days after the quarter's end. Furthermore, they must provide annual financial statements, including an income statement, balance sheet, and income tax return for the calendar year, within 90 days after the year's end. These statements must be certified by the franchisee as accurately reflecting their financial condition.
Annex Brands requires franchisees to use computer-based record keeping and accounting systems that conform to the franchisor's prescribed requirements. This includes maintaining all point-of-sale reports, sales checks, purchase orders, invoices, and cash receipts. Franchisees must also capture and record customer information in a computerized database, linking each customer's transactions to it, as specified by Annex Brands. All books and records of the center must be maintained at the franchisee's principal business address or as otherwise designated in writing to the franchisor.
Failure to submit annual reports to Annex Brands can result in a fee of $525 per document not supplied, with a maximum charge of $1,600 per occurrence. As an alternative to the franchisee-certified statements, Annex Brands allows franchisees to have their financial statements prepared by a Certified Public Accountant at the franchisee's expense. Franchisees are also required to submit a completed Unit Sales Report each Saturday after the close of business and before midnight for the week ending that Saturday, or at such other interval established by Annex Brands.