Must Best In Class Education Center franchisees certify the accuracy of their financial statements?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 90 days after the end of each calendar year, you must prepare and send us a balance sheet (as of the end of the calendar year) and profit and loss statement for the prior calendar year.
Financial statements must be: (a) verified and signed by you certifying to us that the information is true, complete, and accurate; (b) prepared on an accrual basis in compliance with Generally Accepted Accounting Principles; and (c) submitted in any format we reasonably require.
We may require that your financial statements be reviewed or audited by a certified public accountant if you submit materially inaccurate financial statements on a prior occasion.
You must send us a copy of any financial statement required by this Section upon request.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, franchisees are required to certify the accuracy of their financial statements. Specifically, within 90 days after the close of each calendar year, a franchisee must submit a balance sheet and profit and loss statement for the previous year to Best In Class Education Center.
These financial statements must be verified and signed by the franchisee, confirming that the information provided is true, complete, and accurate. Furthermore, the statements must be prepared on an accrual basis, adhering to Generally Accepted Accounting Principles (GAAP), and submitted in a format that Best In Class Education Center reasonably requires.
Best In Class Education Center retains the right to demand a review or audit of a franchisee's financial statements by a certified public accountant if the franchisee has previously submitted materially inaccurate financial statements. Franchisees must also provide copies of any financial statements upon request. This requirement ensures that Best In Class Education Center receives reliable and standardized financial data from its franchisees, which is essential for monitoring the overall financial health of the franchise system and for compliance purposes.