What is the deadline for a Bonchon franchisee to furnish quarterly profit and loss statements and balance sheets to the franchisor?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
g the end of each calendar quarter during the term of this Agreement, you agree to furnish to us, in a form we approve, a statement of the franchised Business's profit and loss for the quarter and a balance sheet as of the end of the quarter. You must certify these statements to be true and correct.
- B. No later than 90 days following the end of each of your fiscal years during the term of this Agreement, you agree to furnish to us, in a form we approve, a statement of the franchised Business's profit and loss for the fiscal year and a balance sheet as of the end of the fiscal year, prepared on a compilation basis and certified to be true and correct by you. We reserve the right to require these annual financial statements to be audited by an independent certified public accountant.
- C. The financial statements required above must be prepared in accordance with United States generally accepted accounting principles, including all disclosures required under those principles.
- D. No later than 30 days following your filing of the annual tax returns of the franchised business, you agree to furnish to us exact copies of the tax returns, including federal, state and any local income tax returns, together with a certificate from an independent certified public accountant that all Social Security payments, taxes and fees required to be paid by you to any governmental agency or entity have been paid, and that if you are a business entity, there is no reason to believe that your entity's status has been impaired.
- E. You must also provide any other information that we reasonably request from time to time.
- F. If you do not timely furnis
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
The 2025 Bonchon Franchise Disclosure Document does not specify a deadline for franchisees to furnish quarterly profit and loss statements and balance sheets. However, it does state that franchisees must furnish annual statements.
According to the FDD, Bonchon franchisees must furnish a statement of profit and loss for the fiscal year and a balance sheet as of the end of the fiscal year no later than 90 days following the end of each fiscal year. These financial statements must be prepared on a compilation basis and certified as true and correct by the franchisee. Bonchon retains the right to require that these annual financial statements be audited by an independent certified public accountant.
If a Bonchon franchisee fails to provide the required financial statements or tax returns on time, they will be charged a late fee of $50 per month for each overdue document. Additionally, Bonchon has the option to terminate the Franchise Agreement if the franchisee does not cure the default after receiving notice. Prospective franchisees should inquire with Bonchon about the specific requirements and deadlines for submitting quarterly financial reports during their due diligence process.