What periodic financial reports must a Bombs Away franchisee provide?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Financial Reports.
Franchisee shall provide such periodic financial reports as Bombs Away Franchising 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 Bombs Away Franchising's fiscal year; and
(iii) any information Bombs Away Franchising requests in order to prepare a financial performance representation for Bombs Away Franchising's franchise disclosure document.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to submit specific periodic financial reports to Bombs Away Franchising. These reports include a monthly profit and loss statement and balance sheet, which must be submitted within 30 days after the end of each calendar month. Additionally, franchisees must provide an annual financial statement, encompassing a profit and loss statement, cash flow statement, and balance sheet, within 90 days after the end of Bombs Away Franchising's fiscal year.
Furthermore, Bombs Away requires franchisees to furnish any information necessary for the preparation of a financial performance representation in Bombs Away's Franchise Disclosure Document. This ensures that Bombs Away has the data needed to accurately represent the financial performance of its franchises to potential franchisees.
These reporting requirements enable Bombs Away to monitor the financial health and performance of its franchise locations, ensure compliance with system standards, and develop accurate financial representations for prospective franchisees. Franchisees should be prepared to maintain detailed and organized financial records to meet these reporting obligations.