What periodic financial reports must a Crown Gold Exchange franchisee provide?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Financial Reports. Franchisee shall provide such periodic financial reports as Crown Gold Franchising may require in the Manual or otherwise in writing, including:
- (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month;
- (ii) an annual financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the Business within 90 days after the end of Crown Gold Franchising's fiscal year; and
- (iii) any information Crown Gold Franchising requests in order to prepare a financial performance representation for Crown Gold Franchising's franchise disclosure document.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees are required to submit periodic financial reports to Crown Gold Franchising. Specifically, a franchisee must provide a monthly profit and loss statement and balance sheet within 30 days after the end of each calendar month.
Additionally, franchisees must furnish an annual financial statement, including a profit and loss statement, cash flow statement, and balance sheet, within 90 days after the end of Crown Gold Franchising's fiscal year. These reports allow Crown Gold Exchange to monitor the financial health of its franchisees and ensure compliance with the franchise agreement.
Crown Gold Exchange also requires franchisees to provide any information requested by them in order to prepare a financial performance representation for Crown Gold Franchising's franchise disclosure document. This enables Crown Gold Exchange to accurately represent the financial performance of its franchises to potential franchisees, which is a common practice in franchising to provide transparency and inform investment decisions.