Who must prepare the unaudited balance sheet and statement of profit and loss for a Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
and (5) 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, an independent certified public accountant must prepare the unaudited balance sheet and statement of profit and loss for each Browns Chicken store. This report must be submitted to Browns Chicken within thirty days after the end of each monthly period.
This requirement ensures that Browns Chicken receives financial reports prepared by a qualified professional, providing a level of assurance regarding the accuracy and reliability of the financial data. Franchisees must factor in the cost of hiring a certified public accountant when budgeting for their ongoing operational expenses.
In addition to the monthly unaudited financial statements, Browns Chicken also requires franchisees to submit a fiscal year-end balance sheet and an annual profit and loss statement, reflecting all year-end adjustments, within sixty days after the end of the franchisee's fiscal year. Franchisees must also provide a copy of their federal and state tax returns as filed with each taxing authority within 105 days after the end of the fiscal year. These requirements help Browns Chicken monitor the financial performance of its franchisees and ensure compliance with financial reporting standards.