What administrative, bookkeeping, and accounting procedures must a Browns Chicken franchisee establish and operate?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
local co-operative with respect to the maintenance, direction, or administration of the co-operative, including without limitation, any failure by any franchisees to make any contributions to the co-operative.
12. RECORDS AND REPORTS.
A. Bookkeeping and Accounting.
Franchisee shall establish and maintain at his own expense a bookkeeping, accounting and record keeping system conforming to the requirements and data processing systems and formats prescribed by Brown from time to time, including, without limitation, requirements for the format, use and retention of sales checks, cash register tapes, purchase orders, invoices, payroll records, check stubs, sales tax records and returned cash receipts and disbursements journals and general ledgers.
B. Reports.
Franchisee shall furnish to Brown in the form prescribed from time to time, using the chart of accounts supplied by Brown: (1) by Tuesday of each week, via email, a report of the Store's Gross Sales for the immediately preceding Monday through Sunday period; (2) within seven (7) days after the end of each Monthly Period (as defined below), a report of Gross Sales of the Store for such Monthly Period and such other data, information and supporting records as Brown from time to time requires; (3) within thirty (30) days after the end of each Monthly Period, an unaudited balance sheet and statement of profit and loss and financial condition of the Store for such Monthly Period, prepared by an independent certified public accountant; (4) within sixty (60) days after the end of Franchisee's fiscal year, a fiscal year-end balance sheet and an annual profit and loss statement for such fiscal year, reflecting all year-end adjustments;
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees must establish and maintain a bookkeeping, accounting, and record-keeping system that adheres to Browns Chicken's requirements. This includes using the data processing systems and formats that Browns Chicken prescribes.
Specifically, the franchisee's system must properly handle and retain sales checks, cash register tapes, purchase orders, invoices, payroll records, check stubs, sales tax records, returned cash receipts, and disbursement journals, as well as general ledgers. Browns Chicken also provides guidance and operating assistance regarding the establishment and operation of administrative, bookkeeping, accounting, inventory control, sale, and general operating and management procedures for a Browns Chicken store.
Furthermore, Browns Chicken requires franchisees to furnish specific reports. Franchisees must submit a weekly gross sales report via email by Tuesday of each week, covering the preceding Monday through Sunday period. Within seven days after each monthly period, franchisees must provide a report of gross sales for that period, along with any other data, information, and supporting records that Browns Chicken requires. Additionally, within 30 days of each monthly period's end, an unaudited balance sheet, a profit and loss statement, and a financial condition statement must be submitted, prepared by an independent certified public accountant. Finally, within 60 days after the franchisee's fiscal year-end, a fiscal year-end balance sheet and an annual profit and loss statement, reflecting all year-end adjustments, are required. Within 105 days after the end of Franchisee's fiscal year, a copy of Franchisee's federal and state tax returns as filed with each taxing authority must be submitted.