Who must prepare the annual financial statements for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Annual Financial Statements and Reports within 60 days of the end of each calendar year, Franchisee shall submit to Franchisor Franchisee's annual financial statements and other reports related to the operations of the Franchised business including, but not limited to, income statement, statement of cash flows, balance sheet, and other operational reports designated by Franchisor. The financial statements must be prepared by a licensed CPA and in accordance with GAAP and, additionally, shall reconcile Gross Sales per GAAP to Gross Sales per this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees are required to submit annual financial statements and other reports related to the operations of their franchised business to Bee Organized within 60 days of the end of each calendar year. These financial statements must include an income statement, statement of cash flows, balance sheet, and other operational reports designated by Bee Organized.
Crucially, the FDD specifies that these annual financial statements must be prepared by a licensed Certified Public Accountant (CPA). Furthermore, the statements must adhere to Generally Accepted Accounting Principles (GAAP). The franchisee must also reconcile Gross Sales per GAAP to Gross Sales as defined in the Franchise Agreement.
This requirement ensures that Bee Organized receives accurate and reliable financial information from its franchisees, allowing them to monitor the financial health of the franchise system. For a prospective franchisee, this means they will need to engage the services of a licensed CPA to prepare their annual financial statements, which will incur an additional cost of doing business. Failing to comply with this requirement could potentially lead to a breach of the franchise agreement.