Who must prepare the annual financial statements for Bang Cookies franchisees?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(f) As to information, records, statements, and/or data that Franchisee must maintain and/or report to Franchisor pursuant to the terms of this Agreement, the operations manual, or as otherwise requested by Franchisor from time to time, the information, records, statements, and/or data maintained by Franchisee and/or reported by Franchisee contains intentional inaccuracies and/or material inaccuracies that are either misleading or false;
(5) Establish filing, accounting, and inventory control systems, conforming to the requirements prescribed by Franchisor, if any.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
The 2024 Bang Cookies Franchise Disclosure Document does not specify who is responsible for preparing the annual financial statements for franchisees. However, it does state that franchisees must maintain and report accurate information, records, statements, and data to Bang Cookies, according to the terms of the agreement and operations manual.
While the FDD does not explicitly state who prepares the financial statements, it emphasizes the franchisee's responsibility for maintaining accurate records. Franchisees are also required to establish filing, accounting, and inventory control systems that conform to Bang Cookies's requirements. This suggests that franchisees will need to either prepare these statements themselves or hire a professional to do so.
Prospective Bang Cookies franchisees should ask the franchisor for clarification on whether they are required to use a specific accounting system or follow particular guidelines for financial reporting. It would also be prudent to inquire whether Bang Cookies provides any support or training to help franchisees meet these requirements.