What is the minimum length of time a Chocolate Fish Coffee franchisee must keep paid invoices?
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.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are required to maintain complete and accurate financial records for their business. This includes keeping supporting documentation such as payroll records, tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks, and paid invoices.
The FDD specifies that these records, including paid invoices, must be kept for a minimum of three years. This requirement ensures that Chocolate Fish Coffee franchisees can properly track their financial performance and comply with any audits or reviews conducted by the franchisor.
Maintaining organized and accessible records is a standard practice in franchising, allowing both the franchisee and Chocolate Fish Coffee to monitor the business's financial health and ensure compliance with the franchise agreement. Failure to maintain these records could result in penalties or other consequences as outlined in the agreement.