Who is responsible for the expense of establishing and maintaining the bookkeeping, accounting, and record-keeping system for a Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of establishing and maintaining the bookkeeping, accounting, and record-keeping system. The franchisee must establish and maintain this system at their own expense.
This system must conform to the requirements and data processing systems and formats prescribed by Browns Chicken from time to time. This includes 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.
Browns Chicken also requires franchisees to furnish various reports, including weekly gross sales reports, monthly gross sales reports, unaudited monthly balance sheets and profit and loss statements, and annual financial statements. These reports must be in the format prescribed by Browns Chicken, using the chart of accounts supplied by them. Franchisees are also required to provide copies of their federal and state tax returns.