Who must certify the year-end income statement and balance sheet for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to your year-end income statement and balance sheet, you or the Operating Principal must certify that the income
statement and balance sheet are correct and complete and that they have been prepared in accordance with generally accepted accounting principles.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the franchisee or the Operating Principal must certify the year-end income statement and balance sheet. This certification confirms that the financial documents are accurate, complete, and prepared following generally accepted accounting principles.
This requirement ensures that Beem Light Sauna receives reliable financial information from its franchisees. The franchisor uses this data to monitor the financial health of individual franchise locations and the overall performance of the Beem Light Sauna system. It also allows the franchisor to create earnings claims for potential franchisees.
Additionally, Beem Light Sauna has the right to demand audited financial statements if an Event of Default occurred within the last calendar year. Franchisees must also provide copies of federal and state income and other tax returns, along with any other required forms, records, books, reports, and information relating to the Studio or the franchisee within 15 days of the franchisor's request. Franchisees must maintain complete and accurate books, records, and accounts of all business conducted under the Franchise Agreement in accordance with generally accepted accounting principles.