What certification must accompany the Period and Quarterly Statements submitted by the Buona franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, Franchisee shall, at its expense, submit to Franchisor within twenty-one (21) days following the end of each of the thirteen (13) 4-week reporting periods of Franchisor ("Periods"), a statement providing certain sales and other financial data in a form and format as Franchisor may reasonably require ("Period Statement") together with a certificate executed by Franchisee or an officer of Franchisee stating that such financial statement is true and accurate.
During the Term, Franchisee shall, at its expense, submit to Franchisor within twenty-one (21) days following the end of each of quarter of the fiscal year, a statement providing certain sales and other financial data in a form and format as Franchisor may reasonably require ("Quarterly Statement") together with a certificate executed by Franchisee or an officer of Franchisee stating that such financial statement is true and accurate..
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must submit both Period and Quarterly Statements, which include sales and financial data, to Buona. These statements must be accompanied by a certificate executed by the franchisee or an officer of the franchisee, attesting that the financial statement is true and accurate. The Period Statements are due within 21 days following the end of each of the thirteen 4-week reporting periods, while Quarterly Statements are due within 21 days following the end of each quarter of the fiscal year.
This requirement ensures that Buona receives reliable financial information from its franchisees. The certification requirement places a legal and ethical responsibility on the franchisee to provide accurate data. This allows Buona to monitor the financial health of individual franchise locations and the overall performance of the franchise system.
In addition to the Period and Quarterly Statements, Buona may also request copies of state or local sales tax returns for the period covered by these statements. Franchisees are also obligated to provide unaudited financial statements for the preceding Period and fiscal year, along with any additional financial statements and tax returns requested by Buona within 15 days of a written request. If a franchisee defaults on the agreement, Buona can demand that all future financial statements include a "Review Report" prepared by an independent Certified Public Accountant (CPA).
These stringent reporting requirements are typical in franchising, allowing franchisors to maintain control and oversight of their brand and ensure compliance with financial standards. For a prospective Buona franchisee, it is crucial to understand these obligations and have systems in place to accurately track and report financial data to avoid potential penalties or breaches of the franchise agreement.