What specific records must a Best Brains franchisee keep on file?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 maintain specific books and records at their principal office for a period of five years from the date of preparation. These records must be made available to Best Brains.
The records include receipts, invoices, payroll records, check stubs, bank records and statements, sales tax records and returns, business and personal tax returns, and journals and transactions pertaining to the franchised business. This comprehensive list ensures that Best Brains has access to all relevant financial and operational data for auditing and compliance purposes.
Best Brains has the right to access these books and records and request information either by email or in paper form, with the franchisee required to furnish the requested information within five days. Additionally, franchisees must grant Best Brains permission to examine the records of any supplier related to their purchases. This level of access allows Best Brains to monitor the franchisee's financial performance and ensure compliance with the franchise agreement. This is a fairly standard practice in franchising, allowing the franchisor to protect the brand and ensure consistency across all locations.