How should Bath Tune Up franchisees submit monthly Gross Revenue reports?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Franchisee will submit monthly Gross Revenue reports 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 Manuals or otherwise in writing.
(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 Gross Revenue reports by the fifth day of each month, covering the immediately preceding calendar month. These reports must be submitted in the format and via the method prescribed by Bath Tune Up. The specific format and method will be detailed in the Manuals or otherwise communicated in writing by Bath Tune Up.
In addition to Gross Revenue reports, Bath Tune Up franchisees must also 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. Franchisees are also obligated to maintain complete and accurate records of all Gross Revenue and Product purchases related to the Franchised Business for the duration of the franchise term and for 36 months following its expiration or termination. These records must be kept in the form and manner specified by Bath Tune Up in the Manual.
Bath Tune Up retains the right to inspect or audit the financial books, records, and accounting documents of the Franchised Business. This includes the right to have a person on the premises to check, verify, and tabulate Gross Revenue and Product purchases, as well as to examine and make copies of all accounting and business records and procedures. Bath Tune Up may also require electronic records to be provided in lieu of an in-person inspection or audit. If required by Bath Tune Up, franchisees must also provide a certification from their accountant that profit and loss statements and statements of Gross Revenue are true and correct, at the franchisee's sole cost and expense.
If an audit or inspection reveals an understatement of Gross Revenue, Continuing Royalty, or other material financial information, the franchisee is responsible for paying the owed Continuing Royalty and other sums within fourteen days of receiving the inspection or audit report. This highlights the importance of maintaining accurate and transparent financial records to avoid potential discrepancies and financial penalties.