When must an Aplus franchisee provide monthly balance sheets and income statements to the franchisor?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ents, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
12.8. Franchisor's Accounting System
Sunoco may make available to you certain accounting systems. If you choose to participate, you must pay to Sunoco the fees charged by the third party software plus Sunoco's costs to provide them to you, which Sunoco's costs may not exceed one hundred dollars ($100) per month. However, you understand and agree as follows:
- (a) You are solely responsible for maintaining accurate business records and Sunoco does not verify their accuracy. In addition, the information provided or required under this system may or may not be consistent with financial information provided or required by Federal, State or local taxing authorities. In that regard, you need to consult with your accountant and/or tax advisor;
- (b) You are required to enter all sales, costs of sales, and business expenses into the backoffice system. Sunoco reserves the right, in its sole discretion, to change or modify the required accounting and bookkeeping procedures in the Manual; (c) Sunoco will have access to reports regarding merchandising sales, margin and sales mix data compiled on your APLUS Store; (d) Sunoco shall have the right to have access to all profit and loss statements, balance sheets and supporting documentation directly from you or from the back office or accounting system;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus franchisees are required to maintain accurate business records. While the franchisor, Sunoco, may offer accounting systems, the franchisee is ultimately responsible for the accuracy of their records. Sunoco will have access to reports regarding merchandising sales, margin, and sales mix data compiled on the franchisee's Aplus store.
Sunoco has the right to access all profit and loss statements, balance sheets, and supporting documentation directly from the franchisee or from the back office or accounting system. Additionally, Aplus franchisees authorize Sunoco to obtain records pertaining to products and services provided to the Aplus Store directly from their vendors and suppliers. Upon Sunoco's request, the franchisee may be required to sign an authorization allowing the vendor/supplier to release such records to Sunoco.
While the FDD excerpt specifies that Sunoco has the right to access these financial documents, it does not explicitly state the specific timeframe (e.g., monthly) in which Aplus franchisees must provide balance sheets and income statements. It only indicates that Sunoco has the right to access these documents either directly from the franchisee or from the back office or accounting system. A prospective franchisee should clarify the specific reporting frequency and deadlines with Aplus.