Who must verify and sign the reports and financial statements furnished by a Chatime franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Each such report and financial statement furnished by Franchisee must be verified as correct and signed by Franchisee in the manner prescribed by Franchisor, and prepared by a certified public accountant.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, financial reports and statements submitted by a franchisee must be verified and signed by the franchisee. This verification must be done in the manner prescribed by Chatime.
In addition to the franchisee's verification, these financial documents must also be prepared by a certified public accountant (CPA). This dual requirement ensures both the franchisee's attestation to the accuracy of the information and the professional oversight of a qualified financial expert.
This requirement is fairly standard in the franchise industry, as franchisors need accurate and reliable financial data from their franchisees to assess performance, calculate royalties, and maintain the integrity of the brand. Franchisees should factor in the cost of engaging a CPA when considering the overall investment and operational expenses of a Chatime franchise.