What balance sheet information is a Best Brains franchisee required to submit annually?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iv) On the 10th of each month, a profit and loss statement for the preceding calendar month and a year-to-date profit and loss statement and balance sheet; and
- (v) within seventy-five days after the end of each calendar year, a calendar year end balance sheet and an annual profit and loss statement for the calendar year reflecting all year end adjustments.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are required to submit a calendar year-end balance sheet annually. Specifically, this balance sheet must be submitted within seventy-five days after the end of each calendar year. This balance sheet needs to reflect all year-end adjustments, ensuring an accurate financial overview of the franchise's performance.
In addition to the annual balance sheet, Best Brains franchisees must also provide monthly financial reports. These include a profit and loss statement for the preceding calendar month, as well as a year-to-date profit and loss statement and balance sheet. These monthly submissions are due on the 10th of each month, ensuring that Best Brains maintains a current understanding of each franchise's financial status.
These reporting requirements enable Best Brains to monitor the financial health of its franchises and ensure compliance with the franchise agreement. The franchisor also has the right to utilize the data supplied by the franchisee for various purposes, including operations reports, advertising reports, and other business reports. This data may also be used in publications, disclosure documents, or advertisements related to the sale of franchised businesses or related entities by Best Brains. Prospective franchisees should be aware of these ongoing reporting obligations and the franchisor's rights to use their financial data.