When is the annual revenue report due for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3.6 Annual Revenue Report.
Within sixty (60) days after the close of Franchisee's fiscal year, Franchisee shall furnish a statement, on forms provided by Franchisor, containing all of the information requested on such forms, certified to by Franchisee and signed by Franchisee's accountant, showing the total net revenue for said preceding fiscal year, as finally adjusted and reconciled after the closing and review of Franchisee's books and records for such fiscal year.
If such statement discloses any underpayment of royalties for such fiscal year, Franchisee shall pay to Franchisor, at the time of submitting such statement, the amount of any such underpayment.
Any overpayment shall be credited to Franchisee's account, if confirmed by Franchisor and/or Franchisor's accountant.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees must submit an annual revenue report within 60 days after the close of their fiscal year. This report must be on forms provided by Closet Storage Concepts and contain all requested information. The franchisee must certify the report, and it must be signed by the franchisee's accountant. The report should show the total net revenue for the preceding fiscal year, reconciled after the closing and review of the franchisee's books.
If the annual revenue report reveals an underpayment of royalties for the fiscal year, the franchisee is required to pay the underpaid amount to Closet Storage Concepts when submitting the report. Conversely, if the report indicates an overpayment of royalties, the excess amount will be credited to the franchisee's account, provided that Closet Storage Concepts and/or its accountant confirms the overpayment.
This requirement ensures that Closet Storage Concepts receives accurate financial information from its franchisees, allowing for proper royalty calculation and reconciliation. Franchisees should maintain accurate records throughout the year to facilitate the preparation of the annual revenue report and avoid potential discrepancies or underpayment penalties.