Besides the Royalty Report, what other reports are Crave franchisees obligated to submit?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
dgers, records of EFT transactions, and backup or archived records of information maintained on any computersystem in accordance with generally accepted accounting principles and in the form and manner prescribed by usfrom time to time in the Manual or otherwise in writing.
11.2 Reports
In addition to the Royalty Report required by Article 4 hereof, you shall comply with the following reporting obligations:
- 11.2.1 You shall, at your expense, submit to us, in the form prescribed by us, a report of Gross Sales and a profit and loss statement for each month (which may be unaudited) for you within ten (10) days after the end of each month during the term hereof. Each such statement shall be signed by your treasurer or chief financial officer or comparable officer attesting that it is true, complete and correct;
- 11.2.2 You shall, at your expense, provide to us a complete annual financial statement (which shall be reviewed) prepared by an independent certified public accountant by April 15th of each year during the term hereof showing the results of the Franchised Business' operations during the previous calendar year. We reserve the right to require such financial statements to be audited by an independent certified public accountant satisfactory to us at your cost and expense if an inspection discloses an understatement of two percent (2%) or more in any report, pursuant to Section 11.3;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must submit several reports in addition to the Royalty Report. Specifically, Crave requires franchisees to submit a report of Gross Sales and a profit and loss statement each month. These reports, which may be unaudited, are due within ten days after the end of each month and must be signed by the franchisee's treasurer, chief financial officer, or a comparable officer, attesting to their accuracy.
Additionally, Crave franchisees must provide a complete annual financial statement, which should be reviewed by an independent certified public accountant, by April 15th of each year. This annual statement must reflect the Franchised Business's operations during the previous calendar year. Crave retains the right to require an audited financial statement at the franchisee's expense if an inspection reveals an understatement of two percent or more in any report.
Furthermore, franchisees are obligated to submit any other forms, reports, records, information, and data that Crave may reasonably designate. These additional submissions must pertain to the Franchised Business and be provided in the form, at the times, and in the places reasonably required by Crave, upon request and as specified in writing from time to time. For Crave food truck franchisees, they must submit the Food Truck for annual vehicle inspection, as required by state law, and submit such reports to Franchisor.