What periodic financial reports is a Better Blend franchisee required to provide?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Financial Reports. Franchisee shall provide such periodic financial reports as BBF may require in the Manual or otherwise in writing, including:
- (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month;
- (ii) an annual financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the Business within 90 days after the end of each calendar year; and
- (iii) any information BBF requests in order to prepare a financial performance representation for BBF's franchise disclosure document, within 30 days after request.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees must submit specific financial reports to Better Blend Franchising, LLC. These reports include a monthly profit and loss statement and balance sheet for the business, which must be submitted within 30 days after the close of each calendar month. This requirement ensures that Better Blend stays informed about the financial health and performance of each franchise location on a regular basis.
In addition to monthly reports, franchisees are also required to provide an annual financial statement. This annual statement must include a profit and loss statement, a cash flow statement, and a balance sheet for the business. This comprehensive annual report must be submitted within 90 days after the end of each calendar year, giving franchisees a reasonable timeframe to compile and submit the necessary information.
Furthermore, Better Blend may request additional financial information from franchisees to prepare a financial performance representation for its Franchise Disclosure Document. Franchisees must provide this information within 30 days of the request. This allows Better Blend to maintain accurate and up-to-date financial data for prospective franchisees, ensuring transparency and informed decision-making. These reporting requirements are typical in franchising, allowing the franchisor to monitor the financial health of the system and provide support where needed.