What documentation is an Aplus franchisee required to furnish to Sunoco upon request to evidence the payment of any tax?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
During the term of this Agreement, Franchisee shall maintain full, complete and accurate books, records and accounts in accordance with the standard accounting system prescribed by Franchisor in the Manual or otherwise in writing. Franchisee shall retain during the term of this Agreement, and for three years thereafter, all books and records related to the Franchised Business including, without limitation, purchase orders, invoices, payroll records, sales tax records, state and federal tax returns, bank statements, cancelled checks, deposit receipts, cash receipts and disbursement journals, general ledgers, and any other financial records designated by Franchisor or required by law.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees must maintain complete and accurate books, records, and accounts using the standard accounting system that Aplus prescribes. These records must be kept during the term of the agreement and for three years after. The records include purchase orders, invoices, payroll records, sales tax records, state and federal tax returns, bank statements, canceled checks, deposit receipts, cash receipts and disbursement journals, general ledgers, and any other financial records that Aplus designates or that are required by law.
This means that Aplus franchisees are responsible for keeping detailed and organized financial records related to their Aplus store. This includes everything from day-to-day sales and expenses to tax filings and bank statements. The obligation to maintain these records extends not only throughout the duration of the franchise agreement but also for three years following its termination.
For a prospective franchisee, this highlights the importance of having a robust accounting system and maintaining meticulous records. Failing to comply with these requirements could lead to issues with Aplus or even legal repercussions. It would be prudent for potential franchisees to discuss these record-keeping obligations with a financial advisor or accountant to ensure they are prepared to meet these requirements.