What other business records must a Chocolate Fish Coffee franchisee keep?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.4 Business Records. Franchisee shall keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents (including, but not limited to, payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks and paid invoices) for at least three years. Franchisee shall keep such other business records as Chocolate Fish Franchising may specify in the Manual or otherwise in writing.
- 10.5 Records Audit. Chocolate Fish Franchising may examine and audit all books and records related to the Business, and supporting documentation, at any reasonable time. Chocolate Fish Franchising may conduct the audit at the Location and/or require Franchisee to deliver copies of books, records and supporting documentation to a location designated by Chocolate Fish Franchising. Franchisee shall also reimburse Chocolate Fish Franchising for all costs and expenses of the examination or audit if (i) Chocolate Fish Franchising conducted the audit because Franchisee failed to submit required reports or was otherwise not in compliance with the System, or (ii) the audit reveals that Franchisee understated Gross Sales by 3% or more for any 4-week period.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees must maintain comprehensive and accurate records of all business expenditures and receipts. These records must be supported by documentation such as payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, canceled checks, and paid invoices. All these documents must be retained for at least three years.
In addition to the specific records listed, Chocolate Fish Coffee franchisees are also required to keep any other business records that Chocolate Fish Franchising specifies in its manual or through written communication. This allows Chocolate Fish Coffee to request additional documentation or information as needed to monitor the franchisee's compliance and performance.
Chocolate Fish Franchising retains the right to examine and audit all books and records related to the Chocolate Fish Coffee business at any reasonable time. This audit can occur at the franchise location or require the franchisee to provide copies of the documents to a designated location. If an audit is required because a franchisee failed to submit required reports or is non-compliant, or if the audit reveals understated gross sales by 3% or more for any 4-week period, the franchisee will be responsible for reimbursing Chocolate Fish Franchising for all costs and expenses associated with the audit.