Who must sign the quarterly and annual reports submitted to Chicken Guy?
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.
- C. Annual Reports. Franchisee shall, at its expense, provide to Chicken Guy either a reviewed or audited profit and loss statement and balance sheet for the Franchised Restaurant within 60 days after the end of each fiscal year to be signed by Franchisee or by Franchisee's treasurer or chief financial officer attesting that the financial statements present fairly the financial position of Franchisee and
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the quarterly and annual reports must be signed by either the franchisee, the franchisee's treasurer, or the franchisee's chief financial officer. These individuals are attesting that the information provided is true, correct, and complete, and that it accurately reflects the franchisee's financial condition using consistently applied accounting principles.
This requirement ensures that Chicken Guy receives reliable financial data from its franchisees. By having a responsible party sign the reports, Chicken Guy aims to increase the accuracy and accountability of the financial information it receives. This allows Chicken Guy to monitor the financial health of its franchise locations and make informed business decisions.
For a prospective Chicken Guy franchisee, this means they need to ensure that their financial reporting is accurate and up-to-date. They also need to have a system in place to generate the required reports on a quarterly and annual basis. If the franchisee does not handle the financial reporting themselves, they need to ensure that their treasurer or chief financial officer is aware of the signing requirement and understands the importance of accurate financial reporting.
Chicken Guy also retains the right to request audited financial statements prepared by a certified public accounting firm acceptable to them. This can occur for any fiscal year or period within a fiscal year, adding another layer of scrutiny to the franchisee's financial reporting. Franchisees should maintain meticulous records and be prepared to provide additional documentation if requested by Chicken Guy.