What reports are Browns Chicken sublessees required to keep?
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, including sublessees, must maintain a detailed bookkeeping and accounting system. This system needs to adhere to Browns Chicken's prescribed requirements, encompassing the format, usage, and retention of various documents such as sales checks, cash register tapes, purchase orders, invoices, payroll records, check stubs, sales tax records, and journals for returned cash receipts and disbursements, as well as general ledgers.
Furthermore, Browns Chicken franchisees are obligated to furnish several reports to Browns Chicken. These reports include a weekly gross sales report submitted via email by Tuesday, covering the preceding Monday through Sunday period. Franchisees must also provide a monthly gross sales report, along with other data, information, and supporting records, within seven days after the end of each month. Additionally, within thirty days after the end of each month, an unaudited balance sheet and profit and loss statement must be submitted, prepared by an independent certified public accountant.
Additional financial reporting requirements include submitting a fiscal year-end balance sheet and an annual profit and loss statement within sixty days after the end of the franchisee's fiscal year. Franchisees are also required to provide a copy of their federal and state tax returns as filed with each taxing authority within 105 days after the end of their fiscal year. These comprehensive reporting requirements ensure that Browns Chicken maintains a clear understanding of each franchise's financial performance and compliance with brand standards.