Is the franchisee required to keep copies of all materials submitted to City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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.
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 maintain and preserve full, complete, and accurate books, records, and accounts for the time period specified in the manual, following the accounting standards prescribed by City Publications. This includes retaining all books and records related to the franchised business for the duration of the agreement and for three years afterward.
These records include, but are not limited to, 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. Franchisees must also maintain an accurate record of daily Gross Sales and provide City Publications with a signed and verified statement of weekly Gross Sales by the close of business on Tuesday each week.
Additionally, franchisees are obligated to supply City Publications with a balance sheet and an income statement monthly, no later than the fifteenth day of the following month. They must also submit an income statement, a balance sheet, and a copy of the annual business tax returns within sixty days of the end of each fiscal year. These financial statements should be prepared according to generally accepted accounting principles and may need to be reviewed or audited by a certified public accountant if required by City Publications. Franchisees are also expected to submit any other periodic reports, forms, and records as specified in the manual or in writing.