What bank statement information is a Best Brains franchisee required to submit monthly?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Reports. You shall furnish to us the following reports among others:
- (i) On the 10th of each month, an electronic or other report (as we designate) of the Gross Sales of the Franchised Business for the period of the 11th of the previous month to the 10th of the current month;
- (ii) On the 10th of each month, a copy of your bank statement for the previous month
- (iii) On the 10th of each month, a copy of your payment report from your payment processing service (currently CSG Forte) for the period of the 11th of the previous month to the 10th of the current month
- (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.
You must verify and sign all reports submitted to us.
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 copy of their bank statement on the 10th of each month for the previous month. This requirement allows Best Brains to monitor the financial performance and stability of its franchise locations.
In addition to the bank statement, Best Brains also requires franchisees to submit other financial reports monthly. These include an electronic report of gross sales, a copy of the payment report from the payment processing service, and a profit and loss statement. These regular submissions enable Best Brains to track sales, manage royalty fees, and assess the overall financial health of each franchise.
Submitting accurate and timely reports is crucial for franchisees, as failure to do so can result in Best Brains estimating gross sales and automatically deducting unpaid fees through electronic funds transfer. Furthermore, Best Brains reserves the right to use the data provided for various purposes, including operations reports, advertising reports, and disclosures related to the sale of franchises. Therefore, franchisees must maintain meticulous financial records and adhere to the reporting schedule to avoid penalties and ensure compliance with the franchise agreement.