What financial reports must a City Publications franchisee submit annually?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
he 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. Additionally, Franchisee shall submit to Franchisor within sixty (60) days of the end of each fiscal year during the term of this Agreement, 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. Such financial statements shall be prepared in accordance with generally accepted accounting principles and reviewed or audited by a certified public accountant if required by Franchisor. In addition, Franchisee shall submit to Franchisor such other periodic reports, forms and records in the manner and at the time specified in the Manual or otherwise in writing.
D. Right of Franchisor to Perform Inspection
Franchisor or its designated agents shall have the right at all reasonable times to examine and copy, at Franchisor's expense, the books, records and tax returns of Franchisee.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are required to submit several financial reports to the franchisor on a monthly and annual basis. Specifically, franchisees must provide 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. These documents must be submitted within 60 days of the end of each fiscal year.
In addition to the annual reports, City Publications franchisees must also submit a balance sheet as of the last day of the preceding month and an income statement for the month and fiscal year-to-date. These monthly reports are due on or before the 15th day of the following calendar month. All financial statements must be prepared in accordance with generally accepted accounting principles.
City Publications may also require that these financial statements be reviewed or audited by a certified public accountant. Franchisees are also obligated to submit any other periodic reports, forms, and records as specified in the manual or in writing by City Publications. Franchisees must also 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.
It is important for prospective City Publications franchisees to understand these reporting requirements, as failure to comply could result in penalties or even termination of the franchise agreement. Franchisees should consult with a financial professional to ensure they can meet these obligations.