What must a Buona franchisee include with each Period Statement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee stating that such financial statement is true and accurate.. The Quarterly Statements shall be submitted within twenty-one (21) days following the end of the fourth (4th), seventh (7th), tenth (10th) and thirteenth (13th) Periods. Upon Franchisor's request, Franchisee shall submit to Franchisor, with each Period Statement or Quarterly Statement, copies of any state or local sales tax returns filed by Franchisee for the period included in the Period Statement or Quarterly Statement.
4.4 Financial Statements. Franchisee shall, at its expense, submit to Franchisor during the Term of this Agreement, unaudited financial statements for the preceding Period and for the preceding fiscal year ("Financial Statements"), together with a certificate executed by Franchisee certifying that such financial statement, as applicable, is true and accurate and such other information in such form as Franchisor may reasonably require. The foregoing Financial Statements shall include both a profit and loss statement and a balance sheet, and shall be prepared in accordance with generally accepted accounting principles. Franchisee must furnish Franchisor with any additional financial statements and any tax returns for the Franchised Business within fifteen (15) days after Franchisee's receipt of Franchisor's written request for the information. In the event Franchisee defaults under this Agreement, Franchisor may require, upon written notice to Franchisee, that all Financial Statements submitted thereafter include a "Review Report" prepared by an independent Certified Public Accountant (CPA).
4.5 Other Reports; Reporting Requirements.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must submit a Period Statement to Buona within 21 days after the end of each of the thirteen 4-week reporting periods. This statement must provide certain sales and other financial data in a form and format that Buona reasonably requires. The franchisee must also include a certificate, executed by the franchisee or an officer of the franchisee, attesting that the financial statement is true and accurate.
Additionally, Buona may request that the franchisee submit copies of any state or local sales tax returns filed for the period covered by the Period Statement. This allows Buona to verify the accuracy of the reported sales data and ensure compliance with tax regulations.
Furthermore, franchisees must also submit unaudited financial statements for the preceding Period and for the preceding fiscal year, which include a profit and loss statement and a balance sheet prepared according to generally accepted accounting principles. These financial statements must be accompanied by a certificate from the franchisee confirming their accuracy. Buona also retains the right to request additional financial statements and tax returns within 15 days of a written request. This comprehensive reporting ensures that Buona has a clear and consistent view of each franchise's financial performance and compliance.