What are the obligations of a Burros Fries franchisee relating to accounting and records?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
14. OBLIGATIONS OF FRANCHISEE RELATING TO ACCOUNTING AND RECORDS
A. Bookkeeping, Accounting and Records
Franchisee acknowledges that the maintenance of accurate financial records and the preparation of financial statements on a timely basis are essential to the efficient operation of the Business. If Franchisee is not qualified to maintain accurate financial records, in our reasonable determination, the Franchisee agrees to hire a qualified bookkeeper who will maintain the financial records of the Franchisee and who will attend to the Business not less than once a week for that purpose.
Franchisee shall maintain during the term of this Agreement, and shall preserve for a minimum of five (5) years, full, complete accurate records of sales, payroll, accounts payable and accounts receivable in accordance with the standard accounting system described by us in the Operations Manual or otherwise specified in writing. Franchisee will keep its books and records related to this business separate from any other business owned by Franchisee or its principals. Any such separate business will be conducted by a separate entity.
Franchisee will provide us with all hard copy and electronic reports we prescribe on or before the fifth (5th) day of each month or daily if we require. Franchisee will also deliver or provide electronic access to business records (we will have independent access to all information that Franchisee stores in any computer, tablets, POS system and software related to the Franchised Business), including an itemized report of Franchisee's Gross Revenue for the prior period on a form we prescribe, which will include payment for that periods' or months' fees due, and may include, to the extent that we require:
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must maintain accurate financial records and prepare financial statements for the efficient operation of their business. If a franchisee is not qualified to maintain these records, Burros Fries requires them to hire a qualified bookkeeper who will maintain the financial records and attend to the business at least once a week.
During the term of the Franchise Agreement, franchisees must maintain and preserve for a minimum of five years full, complete, and accurate records of sales, payroll, accounts payable, and accounts receivable. These records must be kept in accordance with the standard accounting system that Burros Fries specifies in the Operations Manual or in writing. Franchisees must keep their business's books and records separate from any other business they own, and any such separate business must be conducted by a separate entity.
Burros Fries requires franchisees to provide hard copy and electronic reports by the fifth day of each month, or daily if required. Franchisees must also provide electronic access to business records, including access to information stored in computers, tablets, POS systems, and software related to the franchised business. This includes an itemized report of the franchisee's Gross Revenue for the prior period, which will include payment for that period's fees due. Additional reports may be required as specified by Burros Fries.