What kind of reports are Crave franchisees required to submit, as per section 11.2?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
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 have specific reporting obligations as detailed in section 11.2. In addition to the royalty reports required by Article 4, franchisees must submit a report of Gross Sales and a profit and loss statement for 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.
Furthermore, Crave franchisees are required to provide a complete annual financial statement, which must be reviewed by an independent certified public accountant. This annual statement is due by April 15th of each year and should reflect the Franchised Business's operations during the previous calendar year. Crave retains the right to demand an audited financial statement if an inspection reveals an understatement of two percent or more in any report, with the franchisee bearing the cost of the audit.
Crave also has the right to request other forms, reports, records, information, and data related to the Franchised Business. These additional requests will be in a form, at times, and places reasonably required by Crave, specified in writing. This allows Crave to monitor the franchisee's performance and ensure compliance with the franchise agreement, while also providing Crave with the necessary financial information for its own reporting and strategic planning.