Does Azal Coffee include statements of operations in its financial statements?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
You agree that we may receive information directly from suppliers and you authorize your suppliers to provide information directly to us. You agree to sign separate authorizations or additional documents requested by suppliers or that we deem necessary for us to obtain information directly from suppliers.
We may disclose your financial records in future Franchise Disclosure Documents and reporting analyses presented to third parties and to our actual and potential lenders. Also, we may share information in your reports and financial statements with other franchisees or prospective franchisees in the ordinary course of our business as a tool to improve the Azal Coffee franchise
system's volume of business and as required to support any financial performance representation we make in our Franchise Disclosure Document.
10.2 Records.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 50–51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to submit monthly profit and loss statements to the franchisor. Additionally, franchisees must provide copies of annual financial statements. These financial statements must adhere to the "chart of accounts" designated by Azal Coffee.
Azal Coffee retains the right to share franchisees' financial records in future Franchise Disclosure Documents, reporting analyses presented to third parties, and to their actual and potential lenders. Furthermore, Azal Coffee may share information in franchisees' reports and financial statements with other franchisees or prospective franchisees. This sharing of information is intended to improve the Azal Coffee franchise system's volume of business and to support any financial performance representation made in their Franchise Disclosure Document.
Prospective franchisees should be aware that their financial performance will be regularly reported to Azal Coffee and may be shared with other parties. Franchisees must maintain complete and correct books of account, business records, and records of Gross Sales, in accordance with generally accepted accounting principles, for at least seven years.