What financial statements must a City Wide franchisee provide to City Wide on a monthly basis?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3.1 Monthly profit and loss statements and balance sheets by the fifteenth (15th) day of the following month.
Each statement must be itemized by revenue producing activity as specified from time to time by CITY WIDE, the Gross Sales for the preceding month, and such other information as CITY WIDE may require. The chief executive officer and chief financial officer of Franchisee must certify each financial statement as being true and correct in all material respects.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are required to submit specific financial statements to City Wide on a monthly basis. Specifically, City Wide franchisees must deliver monthly profit and loss statements and balance sheets by the fifteenth day of the following month. These statements must adhere to generally accepted financial principles.
Furthermore, these monthly statements must be itemized by revenue-producing activity as specified by City Wide. The statements must include the Gross Sales for the preceding month, along with any other information City Wide may require. This level of detail allows City Wide to monitor the financial health and performance of each franchise unit, ensuring compliance with the franchise agreement and identifying potential issues early on.
To ensure accuracy and accountability, the chief executive officer and chief financial officer of the City Wide franchise must certify each financial statement as being true and correct in all material respects. This certification adds a layer of verification, reinforcing the reliability of the financial data provided to City Wide. This requirement is fairly standard in franchising, as franchisors need accurate and timely financial data to manage the overall health of the brand and support their franchisees effectively.