What financial statements must a Checkersrallys franchisee furnish to the franchisor no later than the fifteenth day following the end of each calendar month?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
11.02 Periodic Reports.You must furnish us: (a) no later than the fifth (5th) day following the end of each Bi-weekly Period, a report of Net Sales for such Biweekly Period; (b) no later than the fifteenth (15th) day following the end of each calendar month, an income statement and statement of cash flow for the Franchised Restaurant for such calendar month and for the year-to-date and a balance sheet as of the end of such month; (c) within ninety (90) days after the end of each Fiscal Year, a year-end balance sheet and income statement and statement of cash flow of the Franchised Restaurant for such Fiscal Year, reflecting all year-end adjustments and accruals; and (d) such other information as we may require at any time and from time to time, including food and labor cost reports and sales and income tax statements. You must verify that the information in each such report and financial statement is complete and accurate and sign it. We have the right to disclose data from such reports and statements if we consider disclosure advisable. We reserve the right to require that your annual financial statements be audited, at your expense, by an independent certified public accountant approved by us.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to submit specific financial statements to the franchisor on a monthly basis. Specifically, no later than the fifteenth day following the end of each calendar month, a Checkersrallys franchisee must furnish an income statement, a statement of cash flow, and a balance sheet. These documents must be for the Franchised Restaurant, covering both the specific calendar month and the year-to-date performance. The balance sheet should reflect the financial position of the restaurant as of the end of that month.
This requirement ensures that Checkersrallys has a consistent and timely view of each franchise's financial health. By receiving these reports, Checkersrallys can monitor performance, identify potential issues early on, and provide support to franchisees as needed. The monthly reporting also allows Checkersrallys to aggregate financial data across the entire franchise system, which is essential for benchmarking and strategic decision-making.
For a prospective Checkersrallys franchisee, this means establishing robust accounting practices from the outset. Franchisees will need to have systems in place to accurately track income, expenses, cash flow, and assets/liabilities. Meeting the fifteenth-day deadline each month requires diligence and organization. Failure to provide these reports on time could potentially lead to penalties or other actions by the franchisor, as detailed elsewhere in the Franchise Agreement. Franchisees should also be prepared for the possibility of audits, as Checkersrallys retains the right to inspect financial records.