Are the Bor Restoration financial statements presented on a calendar year basis?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached to this Disclosure Document as Exhibit G are our audited financial statements for fiscal years ended December 31, 2021, December 31, 2022, and December 31, 2023.
In addition, you will submit to us within 10 days after the end of each calendar year a complete financial statement for the preceding calendar year, including profit and loss statements and a balance sheet.
You will also provide us with your year-end franchisee tax returns within ten days of the date that they are filed with applicable Governmental Authorities but no later than October 15 of each calendar year.
All bookkeeping and accounting must be completed by an employee, independent contractor, bookkeeper, accountant, or certified public accountant who is not you or a family member.
Source: Item 21 — Financial Statements (FDD pages 39–40)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the financial statements are presented on a calendar year basis. Specifically, the audited financial statements included in the FDD are for the fiscal years ended December 31, 2021, December 31, 2022, and December 31, 2023. This indicates that Bor Restoration uses a calendar year for its financial reporting.
This is a fairly standard practice, as many businesses align their financial year with the calendar year for simplicity and consistency. As a Bor Restoration franchisee, you will also be required to submit complete financial statements for the preceding calendar year within 10 days after the end of each calendar year. These statements must include profit and loss statements and a balance sheet, prepared using generally accepted accounting principles and the accrual method.
Furthermore, Bor Restoration requires franchisees to provide year-end tax returns within ten days of filing with governmental authorities, but no later than October 15th of each calendar year. This requirement ensures that Bor Restoration has access to franchisees' financial information for the preceding calendar year, aligning with their calendar-year-based financial reporting system. All bookkeeping and accounting must be completed by a qualified professional who is not the franchisee or a family member, with a certified statement attesting to the accuracy of the documents.