Who must certify the monthly unaudited balance sheet and profit and loss statement for a Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) A monthly unaudited balance sheet and profit and loss statement in a form satisfactory to Franchisor covering Franchisee's business for the prior month and fiscal year to date, all of which shall be certified by Franchisee as true and correct and delivered to Franchisor no later than the 21st day of each month;
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee is responsible for certifying the monthly unaudited balance sheet and profit and loss statement. Specifically, the franchisee must certify these documents as true and correct.
This requirement ensures that Cinnaholic receives financial reports that the franchisee vouches for, adding a layer of accountability. The reports must be delivered to Cinnaholic no later than the 21st day of each month, covering the business's performance for the prior month and fiscal year to date.
This certification doesn't necessarily require a professional accountant, but it does place the onus on the franchisee to ensure the accuracy of the financial data submitted. If the franchisee is a partnership, corporation, or limited liability company, the principal executive officer or chief financial officer can provide the certification.