When must the Bath Tune Up franchisee submit monthly profit and loss statements?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Franchisee will submit monthly profit and loss statements by the fifth day of the month for the immediately preceding calendar month in the form and via the method prescribed by Franchisor from time to time in the Manual or otherwise in writing.
(d) Franchisee will maintain during the Term, and for a period of 36 months following expiration or termination of this Agreement for any reason, complete and accurate records of all Gross Revenue and Product purchases related to the Franchised Business, in the form and manner specified by Franchisor in the Manual.
Franchisee shall perform timely reconciliation of all Gross Revenue and profit and loss statements and provide copies to Franchisor on request.
Franchisor shall have the right to inspect or audit, or cause to be inspected or audited the financial books, records, bookkeeping and accounting records, documents or other materials (collectively, "Documents") in respect of the Franchised Business, including the right, without limitation, to have a person on the premises to check, verify and tabulate Gross Revenue and Product purchases, and/or to examine and make copies of all accounting and business records and procedures.
Franchisor may require electronic records be provided in lieu of an in-person inspection or audit.
If required by Franchisor, Franchisee will also provide Franchisor, at Franchisee's sole cost and expense, with a certification from Franchisee's accountant that profit and loss statements and statements of Gross Revenue are true and correct.
In the event that any such audit or inspection shall disclose an understatement of Gross Revenue, Continuing Royalty or other material financial information related to the Franchised Business, Franchisee shall pay to Franchisor, within fourteen (14) days after receipt by Franchisee of the inspection or audit report, the Continuing Royalty and other sums due on account of such understatement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to submit monthly profit and loss statements by the fifth day of the month. This submission covers the immediately preceding calendar month. The format and method for submitting these statements will be as prescribed by Bath Tune Up, detailed in the manuals or provided in writing.
This requirement ensures that Bath Tune Up has a timely view of each franchisee's financial performance. By setting a firm deadline, Bath Tune Up can efficiently monitor the financial health of its franchise network and identify any potential issues early on. This allows them to offer support or guidance as needed, and also ensures accurate royalty calculations.
Furthermore, franchisees must maintain complete and accurate records of all gross revenue and product purchases for the current term and for 36 months following the agreement's expiration or termination. These records must be kept in the manner specified by Bath Tune Up in its manuals. Franchisees are also responsible for reconciling gross revenue and profit and loss statements and providing copies to Bath Tune Up upon request. Bath Tune Up retains the right to inspect or audit these financial records, either in person or electronically, and can require a certification from the franchisee's accountant verifying the accuracy of the submitted statements.
If an audit reveals an understatement of gross revenue or continuing royalty payments, the franchisee is obligated to pay the owed amounts within 14 days of receiving the audit report. This financial reporting structure is a standard practice in franchising, allowing the franchisor to maintain oversight and ensure compliance with the franchise agreement.