Do the Big Apple Bagels financial statements include a balance sheet?
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.
Further, Franchisee shall furnish to Franchisor copies of other reports designated by Franchisor and such other forms, reports, records, financial statements, register tapes or reports, supporting records and other information as Franchisor from time to time prescribes.
All such financial statements, reports and information shall be on forms approved by Franchisor and shall be signed and verified by Franchisee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 86)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels FDD, franchisees are required to furnish financial documents to the franchisor, BAB Systems, Inc. These documents include a balance sheet. Specifically, within ninety days after the end of each fiscal year, franchisees must submit an annual profit and loss statement, a source and use of funds statement, and a balance sheet for the Big Apple Bagels store. This balance sheet must be as of the end of each fiscal year and reviewed by an independent certified public accountant.
Furthermore, Big Apple Bagels franchisees must also provide quarterly financial reports. By the thirtieth day of each quarter, a franchisee is required to submit 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. These regular submissions ensure that the franchisor has an ongoing view of the franchisee's financial status.
The franchisor also has the right to request that the annual balance sheet be accompanied by an opinion from a certified public accountant or firm, chosen by the franchisee but approved by Big Apple Bagels. This opinion can be qualified only to an extent reasonably acceptable to the franchisor, ensuring a certain level of scrutiny and reliability in the financial reporting. All financial statements, reports, and information provided must be on forms approved by the franchisor and must be signed and verified by the franchisee, ensuring standardization and accountability.