What must be included in the annual revenue report for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Such reports will reconcile the monthly Gross Revenue of Franchisee with Franchisee's weekly Gross Revenue and royalty payments.
- 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 furnish 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 information requested on those forms.
The report must be certified by the franchisee and signed by the franchisee's accountant. It should show the total net revenue for the preceding fiscal year, as adjusted and reconciled after the closing and review of the franchisee's books and records.
If the annual revenue report discloses any underpayment of royalties for the fiscal year, the franchisee is required to pay the underpayment amount to Closet Storage Concepts when submitting the report. Conversely, if the report indicates an overpayment, the amount will be credited to the franchisee's account, provided the overpayment is confirmed by Closet Storage Concepts and/or their accountant. This reconciliation ensures accurate royalty payments and financial reporting between the franchisee and Closet Storage Concepts.