What accounting principles must the annual financial statements submitted by a Ben Jerrys developer adhere to?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2.1 Within ninety (90) days after the end of each fiscal year of DEVELOPER, financial statements prepared and reviewed by an independent certified public accountant, showing the results of operations, including the balance sheet, income statement, and statement of cash flow prepared in accordance with generally accepted accounting principles recognized in the United States as consistently applied ("Generally Accepted Accounting Principals" or "GAAP") (and, for each, the supporting notes) for DEVELOPER;
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the annual financial statements that a Ben Jerrys developer submits must be prepared in accordance with generally accepted accounting principles recognized in the United States. These principles are to be applied consistently.
Specifically, the financial statements must be reviewed by an independent certified public accountant. These statements should show the results of operations, including the balance sheet, income statement, and statement of cash flow for the developer. The supporting notes for each of these statements must also be included.
This requirement ensures that Ben Jerrys receives standardized and reliable financial information from its developers, allowing for accurate assessment of their financial performance and compliance with the franchise agreement. It also provides a level of transparency and accountability in the financial reporting process.