What specific financial statements are included in the annual financial statement that a Bombs Away franchisee must submit?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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 an annual financial statement to Bombs Away Franchising. This annual statement must include a profit and loss statement, a cash flow statement, and a balance sheet for the franchisee's Bombs Away business.
This requirement ensures that Bombs Away Franchising has a clear and comprehensive view of each franchisee's financial performance. By providing these specific financial statements, franchisees enable Bombs Away to assess the overall health and success of their individual businesses and the franchise system as a whole.
The annual financial statement must be submitted within 90 days after the end of Bombs Away Franchising's fiscal year. This deadline provides franchisees with a reasonable timeframe to compile and submit the required financial information while also allowing Bombs Away to review the data in a timely manner. Franchisees should maintain accurate and organized financial records throughout the year to facilitate the preparation of these statements.