What annual financial statements must a Big Apple Bagels franchisee furnish to the franchisor?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Reports and Tax Returns to be Furnished to Franchisor. Franchisee shall furnish to Franchisor the following: (i) on or before 5:00 p.m. on Monday of each week, an electronic (email) report of the Gross Revenues of the BAGELS Store for the preceding week, (ii) on or before 5:00 p.m. on Monday of each week, a mailed or faxed copy of the BAGELS Store's register tape or report (as applicable) used as the basis for the sales that were reported for the preceding week, (iii) by the thirtieth (30th) day of each quarter a profit and loss statement as of the end of the preceding quarter, a year-to-date profit and loss statement and a balance sheet as of the end of the preceding month; (iv) within ninety (90) days after the end of each fiscal year of the BAGELS Store, an annual profit and loss statement and source and use of funds statement for the BAGELS Store and a balance sheet for the BAGELS Store as of the end of each fiscal year, reviewed by an independent certified public accountant, or, if requested by Franchisor, accompanied by an opinion of a certified public accountant or firm of certified public accountants selected by Franchisee and approved by Franchisor, which opinion may be qualified only to the extent reasonably acceptable to Franchisor; and (v) by the due date by which Franchisee is required to file with applicable governmental agency each of the following tax returns, exact copies of all state sales tax returns and such portions of Franchisee's federal and state income tax returns as reflect the operation of the BAGELS Store.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees must provide the franchisor with an annual profit and loss statement, a source and use of funds statement, and a balance sheet for the Big Apple Bagels store. These documents must cover the store's fiscal year-end.
These annual financial statements must be reviewed by an independent certified public accountant. Big Apple Bagels may also request that these statements be accompanied by an opinion from a certified public accountant or firm, selected by the franchisee and approved by Big Apple Bagels. The opinion can only be qualified to an extent reasonably acceptable to Big Apple Bagels.
In addition to the annual statements, Big Apple Bagels franchisees are also required to submit other financial reports more frequently, including weekly gross revenue reports, register tapes, and quarterly profit and loss statements and balance sheets. Franchisees must also provide copies of sales tax returns and relevant portions of state and federal income tax returns reflecting the store's operation.