What is the minimum length of time a Chocolate Fish Coffee franchisee must keep bank statements?
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 complete and accurate books and records for their business for at least three years. These records must reflect all expenditures and receipts.
Supporting documentation that Chocolate Fish Coffee franchisees are required to keep for at least three years includes payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, canceled checks, and paid invoices. This requirement ensures that franchisees maintain detailed financial records of their Chocolate Fish Coffee business operations.
Chocolate Fish Coffee has the right to examine and audit these records at any reasonable time. This audit can occur at the franchisee's location or require the franchisee to provide copies of the documents to a location designated by Chocolate Fish Coffee. The franchisee may have to cover the costs of the audit if they failed to submit required reports, were non-compliant with the Chocolate Fish Coffee system, or if the audit reveals that they understated gross sales by 3% or more for any 4-week period.