How should Bath Tune Up franchisees 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 for the immediately preceding calendar month. These statements must be submitted in the format and via the method prescribed by Bath Tune Up, as detailed in the Manuals or otherwise communicated in writing. This requirement ensures that Bath Tune Up has a consistent and timely view of each franchise's financial performance.
In addition to submitting the profit and loss statements, Bath Tune Up franchisees must maintain complete and accurate records of all gross revenue and product purchases related to the franchised business for the duration of the term and for 36 months following the expiration or termination of the agreement. These records must be kept in the form and manner specified by Bath Tune Up in the Manuals. Franchisees are also responsible for performing timely reconciliations of all gross revenue and profit and loss statements, 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. 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 requested by Bath Tune Up, franchisees must provide a certification from their accountant that the profit and loss statements and statements of gross revenue are true and correct, at the franchisee's sole cost and expense.
Should an audit or inspection reveal an understatement of gross revenue, continuing royalty, or other material financial information, the franchisee is obligated to pay Bath Tune Up the due amounts within 14 days of receiving the inspection or audit report. This comprehensive reporting and auditing process allows Bath Tune Up to monitor financial performance, ensure compliance with the franchise agreement, and maintain the integrity of the Bath Tune Up system.