What form of financial reports must a Beauty Bungalows franchisee prepare?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ed by Franchisor. Franchisee will pay Franchisor a late report fee in the amount of $100 per day ("Late Report Fee") if Franchisee fails to provide such reports within the time period prescribed by Franchisor.
11.02 Records Standards. Franchisee must prepare in a form reasonably approved by Franchisor and in a timely manner, financial reports that accurately reflect all particulars relating to the Business. Franchisee must periodically deliver to Franchisor copies of accounting, tax and other documents and information, within ten (10) business days of Franchisor's requests. Franchisee must provide Franchisor with a copy of its annual financial statements including a profit and loss statement and a balance sheet containing complete notes and disclosures. Such statements must be prepared or compiled by an independent Certified Public Accountant, and be delivered to Franchisor within ninety (90) days after Franchisee's fiscal year end.
11.03 Audits. Franchisee must provide Franchisor or its agent's access to Franchisee's Business and computer systems to examine or audit Franchisee's Business, at any reasonable time on at least ten (10) days prior notice to Franchisee. Franchisor will bear the cost of the audit, unless Franchisee fails to report as required or understates Gross Revenue by two percent (2%) or more for any reported time period, in which case Franchisee will pay the audit cost plus interest on understated costs of one percent (1%) per month. Franchisee must immediately pay to Franchisor all sums owed in addition to any other remedies provided in this Agreement or by law.
11.04 Data Security and Privacy. Franchisee must comply with all applicable federal, state, and local laws, rules, and regulations regarding data security, protection, and privacy, including, without limitation and if applicable, the California Consumer Privacy Act ("CCPA"), Cal. Civ. Code § 1798.100, et seq. Franchisee must comply with any privacy policies, data protection polices, and breach response policies that Franchisor periodically may establish. Franchisee must notify Franchisor immediately regarding any actual or suspected data breach at or in connection with your Franchise or Business. Further, whenever and to the extent Franchisee operates as a "Service Provider" under the CCPA or in a similar capacity under any other applicable federal, state, or local privacy law, Franchisee represents, warrants, and covenants that:
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Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchisees must prepare financial reports that accurately reflect all aspects of their business in a form reasonably approved by Beauty Bungalows. These reports must be delivered to Beauty Bungalows periodically within ten business days of their request.
Specifically, franchisees must provide Beauty Bungalows with a copy of their annual financial statements, including a profit and loss statement and a balance sheet containing complete notes and disclosures. These statements must be prepared or compiled by an independent Certified Public Accountant and delivered within 90 days after the franchisee's fiscal year end.
Beauty Bungalows also requires franchisees to keep and transmit complete and accurate business records on a current basis in the form, time, and manner prescribed by Beauty Bungalows. Franchisees must maintain an accounting system that accurately reflects all operational aspects of the franchise, using designated software programs and account types. These records include monthly and quarterly profit and loss statements, as well as annual statements and balance sheets prepared by an independent Certified Public Accountant. Franchisees must also provide Beauty Bungalows with hard copies and electronic access to these reports as reasonably prescribed.