Does Azal Coffee include statements of cash flows in its financial statements?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
ARTICLE 10 - REPORTS, ACCESS AND AUDIT, CUSTOMER LISTS
10.1 Reports and Financial Statements.
You must use the standard reporting systems and forms specified by us. You must submit to us a complete statement of Gross Sales and other information specified by us for the reporting periods and on the forms specified by us. You must provide us with copies of all sales or similar tax returns, annual income tax returns, monthly profit and loss statements, monthly balance sheets, monthly inventory statements and annual financial statements. You must provide copies of monthly statements or reports to us within fifteen (15) days of the end of each month and copies of annual statements or reports within thirty (30) days of the end of your fiscal year. You must use the "chart of accounts" designated by us from time to time when recording financial information and preparing financial statements and other reports. We may specify other requirements relating to reporting in the Brand Standards Manual. Your failure to timely provide required reports or financial statements may result in liquidated damages amounts being assessed against you under Section 15.7.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 50–51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, franchisees are required to provide certain financial statements to Azal Coffee. According to the FDD, franchisees must submit complete statements of Gross Sales and other information specified by Azal Coffee for reporting periods using their designated forms.
Franchisees are also obligated to provide copies of sales or similar tax returns, annual income tax returns, monthly profit and loss statements, monthly balance sheets, monthly inventory statements, and annual financial statements. These monthly statements or reports must be submitted within fifteen days of the end of each month, while annual statements or reports are due within thirty days of the end of the franchisee's fiscal year.
However, the 2024 FDD excerpt does not explicitly state whether Azal Coffee requires franchisees to submit a statement of cash flows as part of their financial reporting requirements. A prospective franchisee should confirm with Azal Coffee whether a statement of cash flows is required.