What is the deadline for a Best Brains franchisee to submit an annual profit and loss statement?
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.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees must submit a calendar year-end balance sheet and an annual profit and loss statement to Best Brains within seventy-five days after the end of each calendar year. This annual profit and loss statement should reflect all year-end adjustments.
In practical terms, this means a Best Brains franchisee operating on a standard calendar year (January 1 to December 31) would need to submit their annual financial statements to Best Brains by March 16 of the following year (since 75 days after December 31 falls around that date). This allows Best Brains to review the financial performance of each franchise unit and the overall financial health of the franchise system.
In addition to the annual reports, Best Brains also requires franchisees to submit monthly reports, including gross sales, bank statements, payment processing reports, and monthly profit and loss statements. These regular submissions, along with the annual statement, enable Best Brains to monitor the franchisee's business operations and ensure compliance with the franchise agreement.