What accounting principles must City Publications franchisees use when preparing financial statements?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
that any email blast or similar communication to such persons be done by the Franchisor, on behalf of the Franchisee, and the Franchisor will be compensated by Franchisee in accordance with Franchisor's fee arrangements for such services
SECTION 12. BOOKS & RECORDS
A. Requirement to Maintain
During the term of this Agreement, Franchisee shall maintain and preserve for the time period specified in the Manual, full, complete and accurate books, records and accounts in accordance with the accounting standards prescribed by Franchisor in the Manual or otherwise in writing. Franchisee shall retain during the term of this Agreement, and for three (3) years thereafter, all books and records related to the Franchised Business including, without limitation, invoices, purchase orders, payroll records, sales tax records, state and federal income tax returns, cash receipts, disbursement journals, general ledgers and any other financial records designated by Franchisor or as required by law.
B. Sales Reports
Franchisee shall maintain an accurate record of daily Gross Sales and will deliver to Franchisor a signed and verified statement of weekly Gross Sales of the Franchised Business using such form as Franchisor approves or provides in the Manual which may either be in written or electronic form. The weekly statement of Gross Sales for the preceding week must be provided to Franchisor by the close of business on Tuesday of each week.
C. Monthly & Annual Financial Reports
Franchisee shall, at its own expense, supply to Franchisor on or before the fifteenth (15th) day of the following calendar month, in a form approved by Franchisor, a balance sheet as of the last day of the preceding month and an income statement for the month and fiscal year-to-date.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees must adhere to specific accounting standards when preparing their financial statements. Franchisees are required to maintain full, complete, and accurate books, records, and accounts in accordance with the accounting standards prescribed by City Publications in their manual or in writing. These records must be retained during the term of the Franchise Agreement and for three years afterward, including invoices, purchase orders, payroll records, sales tax records, state and federal income tax returns, cash receipts, disbursement journals, general ledgers, and any other financial records designated by City Publications or required by law.
City Publications franchisees must supply to City Publications a balance sheet as of the last day of the preceding month and an income statement for the month and fiscal year-to-date on or before the fifteenth day of the following calendar month, in a form approved by City Publications. Additionally, franchisees must submit an income statement for the fiscal year, a balance sheet as of the last day of the fiscal year, and a copy of the annual business tax returns within sixty days of the end of each fiscal year.
These financial statements must be prepared in accordance with generally accepted accounting principles. City Publications can require these statements to be reviewed or audited by a certified public accountant. Franchisees are also required to submit other periodic reports, forms, and records as specified in the manual or in writing by City Publications. City Publications retains the right to perform inspections of these financial records.