Who must prepare the annual financial statement for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) you will provide to us your complete annual financial statement (which, at our request, must be audited), including a balance sheet, profit and loss statement, and statement of cash flows, prepared in accordance with generally accepted accounting principles by an independent certified public accountant satisfactory to us and showing the results of your operations during such fiscal year, within 60 days after the end of each of your fiscal years;
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the franchisee is required to provide a complete annual financial statement. This statement must include a balance sheet, profit and loss statement, and a statement of cash flows.
The financial statement must be prepared in accordance with generally accepted accounting principles. To ensure accuracy and impartiality, Cicis mandates that an independent certified public accountant, who is satisfactory to Cicis, must prepare the statement.
The completed annual financial statement must be submitted to Cicis within 60 days after the end of the franchisee's fiscal year. This requirement ensures that Cicis receives timely and accurate financial information from its franchisees, allowing them to monitor the financial health of the franchise system.