What financial statements is a Best Brains franchisee required to submit monthly?

the Company for all premiums and other expenses incurred by us in connection with obtaining such insurance.

J. Use the Accounting and Records System.

You shall use the bookkeeping, accounting, and record keeping system we prescribe and submit to us such periodic reports, forms, and records as specified, and in the manner and at the time specified, in the Operations Manual. To ensure uniform financial statements are submitted, we reserve the right to require you to use a standard Chart of Accounts for tracking income and expense items for the Franchised Business.

For a period of five years from their date of preparation, you will keep on file at your principal office and make available to us your books and records, including the following: receipts, invoices, payroll records, check stubs, bank records and statements, sales tax records and returns, business and personal tax returns, and such journals and transactions which contain the transactions of the Franchised Business. You hereby agree to allow us access to these books and records and to furnish us any such information we may request by email or submission in paper form, within five (5) days of our request. You also grant us permission to examine all records of any supplier pertaining to your purchases.

• 1. 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.

1. Failure to Send Reports. If you fail to report your Gross Sales on a timely basis, we may estimate your Gross Sales; and then deposit any unpaid Royalty Fee, advertising contribution or other amount due by use of the electronic funds transfer system.

Source: Item 23 — RECEIPTS (FDD pages 42–190)