What monthly financial statements is a City Wide franchisee required to deliver to the franchisor?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Unaudited Financial Statements. Franchisee will deliver to CITY WIDE the following unaudited statements of Franchisee prepared in accordance with generally accepted financial principles:
- 11.3.1 Monthly profit and loss statements and balance sheets by the fifteenth (15th) day of the following month.
- 11.3.2 Quarterly profit and loss statements and balance sheets within thirty (30) days after each quarter ends; and
- 11.3.3 Annual statement of income and retained earnings, statement of changes in financial position, profit and loss statement, and balance sheet, all within 90 days after the end of each fiscal year.
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 monthly profit and loss statements and balance sheets to City Wide by the 15th day of the following month. These statements must adhere to generally accepted financial principles and be itemized by revenue-producing activity as specified by City Wide. The statements must include gross sales for the preceding month and any other information City Wide requires.
In addition to monthly reports, City Wide also requires quarterly and annual financial statements. Franchisees must submit quarterly profit and loss statements and balance sheets within 30 days after each quarter ends. The annual financial statements, including the statement of income and retained earnings, statement of changes in financial position, profit and loss statement, and balance sheet, are due within 90 days after the end of each fiscal year.
To ensure accuracy, the chief executive officer and chief financial officer of the City Wide franchise must certify each financial statement as true and correct in all material respects. This requirement underscores the importance of maintaining accurate and transparent financial records, as any discrepancies could lead to further scrutiny or penalties from City Wide.