What financial reports must a Crave franchisee submit monthly, and when are they due?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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; and
- 11.2.3 You shall also submit to us, for review or auditing, such other forms, reports, records, information and data as we may reasonably designate, and which pertain to the Franchised Business, in the form and at the times and places reasonably required by us, upon request and as specified from time to time in writing.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to submit two financial reports to Crave on a monthly basis. These include a report of Gross Sales and a profit and loss statement. These reports do not need to be audited.
Crave requires franchisees to submit these reports within ten days after the close of each month. The report must be in a format prescribed by Crave and signed by the franchisee's treasurer, chief financial officer, or a comparable officer, attesting to its accuracy and completeness.
In addition to monthly reports, Crave franchisees must also provide a complete annual financial statement, which must be reviewed by an independent certified public accountant, by April 15th of each year. Crave retains the right to request an audit of the annual financial statements at the franchisee's expense if an inspection reveals an understatement of 2% or more in any report.