What financial statements are Chicken Guy franchisees required to submit on a quarterly basis?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Quarterly Reports. Franchisee shall, at Franchisee's expense, submit to Chicken Guy, in the form prescribed by Chicken Guy, a quarterly profit and loss statement and balance sheet (both of which may be unaudited) within 30 days after the end of each fiscal quarter (as defined by Chicken Guy from time to time) during each fiscal year (as defined by Chicken Guy from time to time). Chicken Guy shall have the right, to be exercised in its sole discretion, to require that Franchisee provide Chicken Guy profit and loss statements and balance sheets at other times requested by Chicken Guy. Each statement and balance sheet shall be signed by Franchisee or by Franchisee's treasurer or chief financial officer attesting that it is true, correct and complete and uses accounting principles applied on a consistent basis which accurately and completely reflect Franchisee's financial condition.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to submit specific financial statements on a quarterly basis. Within 30 days after the end of each fiscal quarter, franchisees must provide Chicken Guy with a quarterly profit and loss statement and a balance sheet. These statements do not need to be audited. Chicken Guy also retains the right to request these financial statements at other times as needed.
The submitted profit and loss statements and balance sheets must be in a form prescribed by Chicken Guy. Furthermore, these documents must be signed by the franchisee, the treasurer, or the chief financial officer, attesting to their truthfulness, correctness, and completeness. The financial statements must also be prepared using accounting principles applied consistently to accurately reflect the franchisee's financial condition.
This requirement ensures that Chicken Guy has a regular insight into the financial health of each franchise location. This allows Chicken Guy to monitor performance, identify potential issues early on, and provide support or guidance as necessary. For a prospective franchisee, this means maintaining organized and accurate financial records and adhering to Chicken Guy's reporting deadlines and formats.