What financial statements must a Cd One Price Cleaners franchisee submit to the franchisor?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall, at its expense, prepare and deliver to Franchisor financial statements showing the results of operations of the Store for each fiscal month (including year-to-date information) and each fiscal year during the Term using the forms and formats that Franchisor periodically specifies.
The statements shall include an income statement (both consolidated and for each CD Store if Franchisee and its affiliates collectively operate more than one CD Store), a balance sheet and a statement of cash flows.
For financial statements covering a fiscal year, the statements shall, at Franchisor's option, be accompanied by a review report, prepared by an independent certified public accountant approved by Franchisor.
Financial statements shall be furnished within fifteen (15) days after the end of each fiscal month and within sixty (60) days after the end of each fiscal year.
Franchisee also shall submit, within five (5) days of filing, its federal and state tax returns for each year during the Term; provided, however, that if Franchisee is an individual, Franchisee may, at its option, submit only those schedules to its personal tax filings which reflect the revenues and expenses of the Store.
- 11.5 Submission of Periodic Reports.
Franchisee shall, at its expense, provide Franchisor, on forms and in the manner prescribed by Franchisor, with (i) daily operating reports reflecting the Store's operations during the previous day; (ii) weekly reports of the Store's Gross Revenues; and (iii) such other data and information regarding the operation of the Store (other than employee-related information) as Franchisor may periodically require, within the time frames established by Franchisor from time to time.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, franchisees are required to provide financial statements detailing the store's operational results. These statements must be prepared at the franchisee's expense, utilizing the forms and formats specified by Cd One Price Cleaners periodically. The financial statements must include an income statement, a balance sheet, and a statement of cash flows. If a franchisee operates multiple Cd One Price Cleaners locations, the income statement should be both consolidated and specific to each store.
For annual financial statements, Cd One Price Cleaners has the option to require a review report from an independent certified public accountant approved by them. These financial statements are due within fifteen days after the end of each fiscal month and sixty days after the end of each fiscal year.
In addition to these financial statements, franchisees must also submit their federal and state tax returns within five days of filing. However, if the franchisee is an individual, they may choose to submit only the schedules from their personal tax filings that reflect the store's revenues and expenses. Franchisees are also required to submit daily operating reports, weekly reports of gross revenues, and any other data regarding the store's operations as required by Cd One Price Cleaners.