What specific financial statements must be included in the annual financial statement submitted by a Better Blend franchisee?
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 are required to submit an annual financial statement to Better Blend within 90 days after the end of each calendar year. This annual financial statement must include a profit and loss statement, a cash flow statement, and a balance sheet for the Better Blend business.
In practical terms, this means that as a Better Blend franchisee, you'll need to maintain accurate and organized financial records throughout the year. You may need to engage an accountant or bookkeeper to ensure that these statements are prepared correctly and submitted on time. Failing to provide these financial reports could potentially result in penalties or other consequences as outlined in the franchise agreement.
Franchisors typically require regular financial reporting from franchisees to monitor the financial health of individual locations and the overall franchise system. This allows Better Blend to assess performance, identify trends, and make informed decisions regarding the brand's strategy and support for franchisees. The additional request for information to prepare a financial performance representation for Better Blend's franchise disclosure document is also a common practice, ensuring the FDD remains accurate and compliant.