When must the Area Developer submit the monthly profit and loss statement to Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer shall, at Area Developer's expense, comply with the following requirements to prepare and submit to Franchisor the following reports, financial statements and other data, which shall be prepared in the form and using the standard statements and chart of accounts as Franchisor may prescribe from time to time:
- 5.3.1 No later than the twentieth (20th) day of each calendar month, Area Developer shall have prepared a profit and loss statement reflecting all Area Developer's operations during the last preceding calendar month, for each Restaurant.
Area Developer shall prepare profit and loss statements on an accrual basis and in accordance with generally accepted accounting principles.
Area Developer shall submit such statements to Franchisor at such times as Franchisor may designate or as Franchisor may otherwise request.
5.3.2 On April 15th of the year following the end of Area Developer's fiscal year, a complete annual financial statement (prepared according to generally accepted accounting principles), on a compilation basis, and if required by Franchisor, such statements shall be prepared by an independent certified public accountant.
5.3.3 Such other forms, reports, records, information, and data as Franchisor may reasonably designate.
Maintaining Records.
Area Developer shall maintain during the term of this Agreement, and shall preserve for at least seven (7) years from the dates of their preparation, and shall make available to Franchisor at Franchisor's request and at Area Developer's expense, full, complete, and accurate books, records, and accounts in accordance with generally accepted accounting principles.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, an Area Developer is required to submit a profit and loss statement to the company no later than the twentieth day of each calendar month. This statement should accurately reflect all of the Area Developer's operations during the preceding month for each restaurant.
The profit and loss statements must be prepared on an accrual basis, adhering to generally accepted accounting principles. Additionally, Crepe De Licious retains the right to request these statements at other times or designate specific submission schedules.
Beyond the monthly statements, Area Developers must also provide a complete annual financial statement by April 15th of the year following the end of their fiscal year. This annual statement should be prepared according to generally accepted accounting principles on a compilation basis, and may need to be prepared by an independent certified public accountant if required by Crepe De Licious. Area Developers are also obligated to maintain and preserve full, complete, and accurate books, records, and accounts for at least seven years, making them available to Crepe De Licious upon request.