When are Bath Tune Up franchisees required to 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. These statements must reflect the financial performance of the immediately preceding calendar month. The format and method for submitting these statements will be as prescribed by Bath Tune Up, and can be found in the manuals or in writing.
In addition to the monthly submissions, Bath Tune Up franchisees must maintain complete and accurate records of all gross revenue and product purchases related to the franchised business. These records must be kept during the term of the agreement and for 36 months following its expiration or termination. The form and manner of these records must be as specified by Bath Tune Up in the manuals.
Bath Tune Up franchisees are also responsible for performing timely reconciliations of all 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 the financial books, records, and accounting documents of the franchised business. If an audit reveals an understatement of gross revenue or continuing royalty, the franchisee is responsible for paying the owed amounts within 14 days of receiving the audit report.
Furthermore, Bath Tune Up can request a certification from the franchisee's accountant verifying the accuracy of the profit and loss statements and statements of gross revenue. This certification is at the franchisee's sole cost and expense. These requirements ensure that Bath Tune Up has access to accurate and timely financial information from its franchisees, allowing for effective monitoring and management of the franchise system.