What kind of periodic financial reports must a Chocolate Bash franchisee provide?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
10.2 Reports.
- (a) Financial Reports. Franchisee shall provide such periodic financial reports as CB Franchising may require in the Manual or otherwise in writing, including:
- (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month;
- (ii) an annual financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the Business within 90 days after the end of CB Franchising's fiscal year; and
- (iii) any information CB Franchising requests in order to prepare a financial performance representation for CB Franchising's franchise disclosure document.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are required to submit periodic financial reports to the company. Specifically, a Chocolate Bash franchisee must provide a monthly profit and loss statement and balance sheet within 30 days after the close of each calendar month.
In addition to the monthly reports, franchisees must also furnish an annual financial statement. This annual statement should include a profit and loss statement, a cash flow statement, and a balance sheet for the business. This annual report is due within 90 days after the end of Chocolate Bash's fiscal year.
Furthermore, Chocolate Bash may request additional information from franchisees as needed to prepare a financial performance representation for their Franchise Disclosure Document. These reporting requirements ensure that Chocolate Bash has a clear and consistent view of each franchise's financial performance, which is typical in franchising.