What accounting principles must a Buns On Fire franchisee use when keeping books and accounts?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i.) Franchisee shall maintain all financial records and reports required pursuant to this Agreement or the Confidential Operations Manual for a period of not less than three (3) years after the Effective Date of Termination. Franchisee shall permit Franchisor to make final inspection of Franchisee's financial records, books, tax returns, and other accounting records within three (3) years of the Effective Date of Termination.
- (ii.) Within fifteen (15) days of termination, Franchisee shall transfer or make available to Franchisor all Franchised Business data (including but not limited to sales, labor, cost of goods, marketing, and all other business data) from any server or computer used in connection with the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to maintain all financial records and reports as mandated by the franchise agreement or the Confidential Operations Manual. These records must be kept for a minimum of three years following the termination of the franchise agreement.
Buns On Fire retains the right to inspect these financial records, books, tax returns, and other accounting documents within three years after the termination date. Additionally, within 15 days of termination, franchisees must transfer or make available to Buns On Fire all franchised business data, including sales, labor, cost of goods, and marketing information, from any server or computer used in connection with the franchised business.
While the FDD specifies the requirement to maintain financial records and the franchisor's right to inspect them, it does not explicitly state which specific accounting principles (e.g., GAAP, IFRS) a Buns On Fire franchisee must adhere to. A prospective franchisee should seek clarification from Buns On Fire regarding the required accounting standards to ensure compliance and accurate financial reporting.