What are the requirements for Apricot Lane franchisees regarding quarterly financial statements and reports, as outlined in Section 13?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
, sales receipts, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursement journals, general ledgers, and any other financial records designated by FRANCHISOR or required by law.
B. Quarterly Financial Statements and Reports
FRANCHISEE will supply to FRANCHISOR quarterly profit and loss statements and balance sheets on the Franchised Business within thirty (30) days following the end of the calendar quarter. Additionally, FRANCHISEE shall, at its expense, submit to FRANCHISOR by April 30 of each year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet as of the last day of such fiscal year. Such financial statements will be certified to be true and correct by FRANCHISEE. FRANCHISOR reserves the right to require, at FRANCHISEE's expense, annual financial statements, prepared in accordance with generally accepted accounting standards, reviewed or audited by an independent certified public accountant.
C. Other Records and Reporting Requirements
FRANCHISEE shall submit to FRANCHISOR such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or as FRANCHISOR may otherwise require in writing from time to time.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Section 13 outlines the accounting and record-keeping requirements for franchisees. Specifically, franchisees are required to provide quarterly profit and loss statements and balance sheets for their franchised business to Apricot Lane within 30 days following the end of each calendar quarter. This ensures that Apricot Lane receives timely financial updates from its franchisees.
In addition to quarterly reports, Apricot Lane franchisees must also submit an annual profit and loss statement and a balance sheet as of the last day of the fiscal year by April 30 of each year. These annual financial statements must be certified as true and correct by the franchisee. This requirement emphasizes the franchisee's responsibility for the accuracy of their financial reporting.
Apricot Lane retains the right to request annual financial statements that are prepared in accordance with generally accepted accounting standards (GAAP) and either reviewed or audited by an independent certified public accountant, at the franchisee's expense. This provision allows Apricot Lane to ensure a higher level of scrutiny and accuracy in the financial reporting of its franchisees if deemed necessary. Furthermore, franchisees must also submit other periodic reports, forms, and records as specified in the Confidential Operations Manual or as otherwise required in writing by Apricot Lane, including access to the point-of-sale and inventory management system database no less frequently than once each calendar quarter.