What is the deadline for a Best Brains franchisee to submit a calendar year-end balance sheet?
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 within seventy-five days after the end of each calendar year. This balance sheet 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 year-end balance sheet by March 16 of the following year (since 75 days after December 31 falls on that date). This requirement ensures that Best Brains has access to the franchisee's financial information for the entire year, allowing them to assess the financial health of the franchise and ensure compliance with the franchise agreement.
In addition to the year-end balance sheet, Best Brains also requires franchisees to submit other regular reports, including monthly gross sales reports, bank statements, payment processing reports, and monthly profit and loss statements. These ongoing reporting requirements, along with the year-end balance sheet, provide Best Brains with a comprehensive view of the franchisee's financial performance and operational activities.