Who is prohibited from completing the bookkeeping and accounting for a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
You must provide us with reasonable proof at the end of each calendar year that your bookkeeping and accounting have met these requirements.
- i.
All financial statements must be accompanied by a statement certified under penalty of perjury from the employee, independent contractor, bookkeeper, accountant, or certified public accountant that the documents are true and accurate.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees themselves and their family members are explicitly prohibited from handling the bookkeeping and accounting responsibilities for the franchise. This requirement ensures financial transparency and reduces the risk of inaccuracies or conflicts of interest.
Instead, Bor Restoration mandates that all bookkeeping and accounting tasks must be performed by a qualified professional, such as an employee, independent contractor, bookkeeper, accountant, or certified public accountant (CPA). This professional must not be the franchisee or a member of their immediate family. Furthermore, Bor Restoration requires franchisees to provide proof annually that their bookkeeping and accounting practices adhere to these guidelines.
To ensure accuracy and compliance, Bor Restoration also stipulates that all financial statements must be prepared using generally accepted accounting principles (GAAP) and based on the accrual method of accounting. Additionally, these statements must be certified under penalty of perjury by the individual preparing them, attesting to their truthfulness and accuracy. This stringent requirement underscores the importance Bor Restoration places on maintaining reliable and transparent financial records across all its franchise locations.