How soon after a request from Bhc must a franchisee submit financial or statistical reports?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee must submit financial or statistical reports within 10 business days of the franchisor's request. These reports, records, statements, or information must be those required in the Operations Manual or otherwise requested by Bhc in writing. Furthermore, all financial or statistical information provided must be accurate and correct in all material respects. This requirement applies to both franchisees and master franchisees.

This quick turnaround time means franchisees need to maintain organized and readily accessible financial records. The franchisee must be prepared to compile and submit the requested data promptly to avoid potential penalties. Bhc also requires franchisees to submit a copy of their Schedule C (IRS Form 1040 Profit and Loss Statement) or equivalent portion of their federal tax return within 90 days after the end of each fiscal year, providing another regular reporting requirement.

Failure to submit the required reports can result in a penalty of $100 per occurrence or $100 per week until the reports are submitted. This penalty can be debited directly from the franchisee's bank account if the report is not submitted within ten days of the request. These fines are then contributed to the Marketing and Promotion Fees or paid directly to Bhc, adding an incentive for franchisees to comply with reporting requirements.

Franchisees should ensure they understand all reporting requirements outlined in the Operations Manual and maintain meticulous records to facilitate timely and accurate submissions. This proactive approach will help avoid penalties and maintain a positive relationship with Bhc.