What must be included in the Annual Financial Statement provided by a Churchs Chicken franchisee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- **C.
Annual Financial Statements.** Within 90 days following the end of each calendar or fiscal year, Franchisee shall, at its expense, provide to Cajun an unaudited financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the preceding calendar or fiscal year for the Franchised Restaurant, and such other information in such form as Cajun may reasonably require ("Annual Financial Statement"), together with a certificate signed by Franchisee's president, treasurer or chief financial officer certifying that such Annual Financial Statement is true, correct and complete, uses accounting principles applied on a consistent basis, and accurately and completely reflects the financial condition of Franchisee and the results of operations of the Franchised Restaurant during the period covered.
Upon request from Cajun, the Annual Financial Statement shall include both a profit and loss statement and a balance sheet, and shall be prepared in accordance with United States generally accepted accounting principles.
Cajun may, in its reasonable discretion, require that Franchisee, at Franchisee's expense, submit audited financial statements prepared by a certified public accounting firm acceptable to Cajun for any fiscal year or any period or periods of a fiscal year.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must provide Cajun, Churchs Chicken's parent company, with an Annual Financial Statement within 90 days following the end of each calendar or fiscal year. This statement must cover the preceding calendar or fiscal year for the franchised restaurant.
The Annual Financial Statement must include a profit and loss statement, a cash flow statement, and a balance sheet. Additionally, it should contain any other information that Cajun may reasonably require. The franchisee's president, treasurer, or chief financial officer must sign a certificate attesting that the Annual Financial Statement is true, correct, and complete. The certificate also confirms that the statement uses accounting principles applied consistently and accurately reflects the financial condition and operating results of the franchised restaurant during the covered period.
Furthermore, upon request from Cajun, the Annual Financial Statement must include both a profit and loss statement and a balance sheet prepared in accordance with United States generally accepted accounting principles. Cajun retains the discretion to require franchisees to submit audited financial statements prepared by a certified public accounting firm acceptable to Cajun, at the franchisee's expense, for any fiscal year or period within a fiscal year. This ensures that Churchs Chicken can thoroughly assess the financial health and performance of its franchised locations.