Who must prepare the annual financial statements for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties do hereby agree, as follows:
ARTICLE 1 DEFINITIONS
Supplementing the terms and definitions contained in the foregoing "Recitals":
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees and other obligations under this Agreement. The "Accounting Period" shall be a monthly period commencing not later than the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and shall continue each and every month thereafter throughout the Term of this Agreement and any applicable renewal term.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document excerpts provided, it is not specified who is responsible for preparing the annual financial statements for a Beard Papas franchise. However, the document does define the term "Accounting Period" as a period determined by Beard Papas for measuring and reporting financial information and payment of financial obligations by the franchisee. This period is typically monthly, starting no later than the business commencement date and continuing throughout the term of the agreement.
While the FDD excerpts do not explicitly state who must prepare the annual financial statements, they do emphasize the franchisee's responsibility to provide financial information to Beard Papas. The franchisee must also provide calendar year quarterly reports and monthly reports documenting marketing initiatives, expenses, and other financial information as designated by Beard Papas.
To gain clarity on who is responsible for preparing the annual financial statements, a prospective Beard Papas franchisee should directly ask the franchisor for details on the specific requirements for financial reporting, including who is authorized or required to prepare these statements. Understanding these requirements is crucial for managing the financial aspects of the franchise and ensuring compliance with Beard Papas's standards.