What financial statements must a Burneys Sweets More franchisee submit monthly?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
op. If Franchisee does not use a point-of-sale system which reports Franchisee's gross sales to Franchisor, then Franchisor shall also be required to submit on the twentieth (20th) day of each calendar month the Shop's most current sales tax report. Failure to provide Franchisee with an accurate and timely sales tax report each month shall constitute a default of this Agreement.
- (iv) Audit of Franchisee's Records. Franchisor or its designated agents shall have the right at all reasonable times to examine and copy, at Franchisor's expense, the books, records, and tax returns of the Shop and remove copies thereof from the Shop premises. Franchisor shall also have the right at any time, at Franchisor's expense, to have an independent audit made of the Shop books, records and accounts. If any inspection or audit reveals that an underpayment exists, Franchisee shall immediately pay to Franchisor
the amount owing to Franchisor, as determined by the inspection or audit.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees are generally required to submit a sales tax report each month. Specifically, if a Burneys Sweets More franchisee does not use a point-of-sale system that automatically reports gross sales to the franchisor, they must submit the shop's most current sales tax report by the 20th day of each calendar month. Failing to provide an accurate and timely sales tax report each month constitutes a default of the Franchise Agreement.
In addition to the monthly sales tax report, if a franchisee prepares monthly profit and loss statements, Burneys Sweets More may require the franchisee to have these statements reviewed by a certified public accountant on a quarterly basis. The franchisee would bear the expense of these quarterly reviews and then submit them to Burneys Sweets More.
Furthermore, Burneys Sweets More franchisees must submit annual financial documents. Within 45 days following the close of the franchisee's fiscal year, they must provide copies of a balance sheet, profit and loss statement, and cash flow report. These annual financial statements must be prepared and certified by a certified public accountant, covering the previous 12 months of the Burneys Sweets More shop's operations.