When must a Carvel franchisee furnish a profit and loss statement and balance sheet to the franchisor?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before February 1st of each year (or such other date specified by us in the Manuals or otherwise in writing, which may be by email or other electronic communications), you must furnish to us a statement of the profit and loss of the Franchised Business for the last fiscal year and a balance sheet as of the end of the last fiscal year, prepared in accordance with our requirements and certified by you to be true and correct.
We have the right
to demand audited financial statements if a financial-related default has occurred under this Agreement within the last calendar year.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to submit financial statements to Carvel on a specific schedule. Specifically, each Carvel franchisee must furnish a statement of profit and loss for the last fiscal year, along with a balance sheet as of the end of the last fiscal year.
These financial documents must be prepared according to Carvel's requirements and certified by the franchisee as true and correct. The deadline for submitting these statements is on or before February 1st of each year. However, Carvel retains the right to modify this date, which they would communicate to franchisees either through the Manuals or in writing, potentially via email or other electronic means.
In addition to the annual financial statements, Carvel also has the right to demand audited financial statements from a franchisee if a financial-related default has occurred under the Franchise Agreement within the last calendar year. This provision ensures Carvel can closely monitor the financial health of its franchises, especially in cases where there have been prior financial issues.