What specific financial documents must an Azal Coffee franchisee submit monthly?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to submit several financial documents on a monthly basis. These include a complete statement of Gross Sales, monthly profit and loss statements, monthly balance sheets, and monthly inventory statements. These reports must be submitted within fifteen (15) days of the end of each month.
Azal Coffee requires franchisees to use standard reporting systems and forms that the company specifies. Additionally, franchisees must adhere to a designated "chart of accounts" when recording financial information and preparing statements. The Brand Standards Manual may contain other reporting requirements.
Failure to provide these reports on time may result in the franchisee being assessed liquidated damages, as specified in Section 15.7 of the franchise agreement. Azal Coffee also has the right to receive information directly from the franchisee's suppliers, and the franchisee must authorize suppliers to provide this information. Azal Coffee may disclose the franchisee's financial records in future Franchise Disclosure Documents and reporting analyses presented to third parties and lenders, and may share the information with other franchisees or prospective franchisees to improve the Azal Coffee franchise system's volume of business and to support any financial performance representations made in the Franchise Disclosure Document.
In addition to the monthly reports, franchisees must also provide copies of all sales or similar tax returns and annual income tax returns. Annual statements or reports must be submitted within thirty (30) days of the end of the franchisee's fiscal year. Franchisees must maintain complete and correct books of account, business records, and records of Gross Sales in accordance with generally accepted accounting principles for a period of seven years or as specified by applicable laws.