What standard reporting systems and forms must Azal Coffee franchisees use?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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.
You must keep complete and correct books of account, business records, and records of Gross Sales, in accordance with the procedures specified by us and in accordance with generally accepted accounting principles. You must keep all of your business records for the greater of: (a) seven (7) years; or (b) the time period specified by any applicable federal, state, or local law or regulation.
10.3 Inspection; Shopping Service.
We and our designated agents have the right, at any reasonable time and without prior notice, to: (a) inspect the Franchise Business; (b) confer with you and your management employees;
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 use the standard reporting systems and forms specified by the franchisor. Franchisees must submit complete statements of Gross Sales and any other information that Azal Coffee specifies for particular reporting periods, using the forms that Azal Coffee provides.
Azal Coffee requires franchisees to provide 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. 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. Franchisees must adhere to the "chart of accounts" designated by Azal Coffee when recording financial information and preparing financial statements and other reports. The Brand Standards Manual may contain additional reporting requirements.
Furthermore, Azal Coffee may require or authorize franchisees to use certain technology, referred to as "Franchise Technology," which may include websites, point of sale and customer management systems, computer hardware, software, mobile applications, web-based systems, intranet, extranet, and other electronic media. This technology can be used for various purposes, including advertising, online ordering, inventory control, sales tracking, report reviewing, and communication between Azal Coffee, its franchisees, and customers. Franchisees are responsible for paying all required license fees, service fees, management fees, and support, maintenance, update, and upgrade costs associated with the Franchise Technology.