What financial reports must a Canine Dimensions franchisee provide annually to the franchisor?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall; at its expense, provide to Franchisor an annual profit and loss statement and balance sheet, accompanied by a review report prepared by an independent certified public accountant satisfactory to Franchisor, within ninety (90) days after the end of each fiscal year of the Franchised Business during the Term, showing the results of the Franchised Business during said fiscal year.
10.4 Other Reports Required by Franchisor
Franchisee shall also submit to Franchisor, for review or auditing, such other forms, reports, records, information, and data as Franchisor may reasonably designate, in the form and manner (including electronic telecommunications) and at the time and places reasonably required by Franchisor, upon request and as specified from time to time in the Manual or otherwise in writing.
10.5 Franchisor's Right to Audit
Franchisor or its representatives or agents shall have the right at any time during normal business hours, and without prior notice to Franchisee, to inspect, copy, request, receive and/or audit or cause to be inspected, copied, requested, received and/or audited the business records, bookkeeping and accounting records, sales, reports, financial statements and tax returns that Franchisee is required to submit to the Franchisor hereunder along with Franchisee's books and records (including any records relating to Franchisee if Franchisee is a Business Entity). If Franchisor should determine that an audit is necessary, Franchisee will, upon notice, deliver to Franchisor all required records and documents and fully cooperate with Franchisor's representatives conducting any such audit. In the event that any such audit should disclose
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, franchisees must provide two specific financial reports to the franchisor annually. First, the franchisee must submit an annual profit and loss statement. Second, the franchisee must also provide a balance sheet. Both of these reports must be accompanied by a review report.
This review report needs to be prepared by an independent certified public accountant. The CPA selected must be satisfactory to Canine Dimensions. The reports must be submitted within ninety (90) days after the end of each fiscal year of the Franchised Business during the Term. These reports should accurately reflect the financial results of the Franchised Business during the fiscal year.
In addition to the specific annual reports, Canine Dimensions franchisees are also obligated to submit any other forms, reports, records, information, and data that Canine Dimensions may reasonably designate. These additional submissions must be in the format, manner, and at the times and places that Canine Dimensions reasonably requires. These requirements can be specified in the Manual or in writing. Canine Dimensions also retains the right to inspect, copy, request, receive, and/or audit the franchisee's business records, bookkeeping, accounting records, sales reports, financial statements, and tax returns at any time during normal business hours and without prior notice.