Is a Cool Binz franchisee required to use COOL BINZ Software or other designated software for maintaining customer records?

[Item 23: RECEIPTS]

D. RECORDS, REPORTS AND FINANCIAL STATEMENTS.

We require you to use the COOL BINZ Software, or other Required Software as we designate, for maintaining Customer records for the COOL BINZ Business. We have confidential access to your databases and related information from the COOL BINZ Software, which we use to compute the Royalty due on Gross Sales, and to make other evaluations and verifications. In addition, you must establish and maintain, at your expense, an accounting system that conforms to the requirements and formats that, from time to time, we prescribe. You shall furnish to us, in the manner and format that we require:

• 1. an income statement, profit and loss statement, and cash flow statement within 48 hours of request;
• 1. on the 5th day of each month, a report of Gross Sales obtained in the prior month;
• 1. within 10 days of our request, an unaudited income statement for the requested time period in a form satisfactory to us, and such additional reports as we may require;
• 1. within 90 days after the close of your fiscal year, a complete income statement and other financial statements in a form we may prescribe in our sole discretion;
• 1. within ten days of our request, exact copies of any state, federal, or other income tax returns covering the operation of the COOL BINZ Business, as well as the state, federal and other income tax returns from your existing business(es) that provide leasing of portable storage containers, which we may need to review to assure all Gross Sales have been accurately reported;
• 1. by November 1 of each year, financial projections and a marketing plan for the upcoming year in the form we may prescribe in our sole discretion; and
• 1. any other reports we may require in the future.

Your fiscal year must end on December 31. You must verify and sign each report and financial statement in the manner that we prescribe. We can disclose data derived from these reports without specifically identifying you or the Business (unless we have your written consent to do so). We can require you to have audited financial statements prepared on an annual basis if you fail to comply with any provision of this Agreement. Finally, you will allow us, as we deem appropriate, timely access to your copy of any computer systems that you maintain, to retrieve all information relating to the operation of the COOL BINZ Business.

Source: Item 23 — RECEIPTS (FDD pages 63–238)