What other documents related to the business might Desi District Franchise Group request from a franchisee?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
s.** Franchisee shall use such customer data management, sales data management, administrative, bookkeeping, accounting, and inventory control procedures and systems as Desi District Franchise Group may specify in the Manual or otherwise in writing.
10.2 Reports.
- (a) Financial Reports. Franchisee shall provide such periodic financial reports as Desi District Franchise Group 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 Desi District Franchise Group's fiscal year; and
- (iii) any information Desi District Franchise Group requests in order to prepare a financial performance representation for Desi District Franchise Group's franchise disclosure document.
- (b) Legal Actions and Investigations. Franchisee shall promptly notify Desi District Franchise Group of any Action or threatened Action by any customer, governmental authority, or other third party against Franchisee or the Business, or otherwise involving the Franchisee or the Business. Franchisee shall provide such documents and information related to any such Action as Desi District Franchise Group may request.
- (c) Government Inspections. Franchisee shall give Desi District Franchise Group copies of all inspection reports, warnings, certificates, and ratings issued by any governmental entity with respect to the Business, within three days of Franchisee's receipt thereof.
- (d) Other Information. Franchisee shall submit to Desi District Franchise Group such other financial statements, budgets, forecasts, reports, records, copies of contracts, documents related to litigation, tax returns, copies of governmental permits, and other documents and information related to the Business as specified in the Manual or that Desi District Franchise Group may reasonably request.
- 10.3 Initial Investment Report. Within 120 days after opening for business, Franchisee shall submit to Desi District Franchise Group a report detailing Franchisee's investment costs to develop and open the Business, with costs allocated to the categories described in Item 7 of Desi District Franchise Group's Franchise Disclosure Document and with such other information as Desi District Franchise Group may request.
- 10.4 Business Records. Franchisee shall keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents (including, but not limited to, payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks and paid invoices) for at least three years. Franchisee shall keep such other business records as Desi District Franchise Group may specify in the Manual or otherwise in writing.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees must submit various documents and information related to their business operations to Desi District Franchise Group. These include financial statements, such as monthly profit and loss statements and balance sheets, submitted within 30 days after each calendar month's end. Franchisees must also provide annual financial statements, including profit and loss statements, cash flow statements, and balance sheets, within 90 days after the end of Desi District's fiscal year.
In addition to financial reports, Desi District requires franchisees to promptly report any legal actions or threatened actions by customers, governmental authorities, or other third parties against the franchisee or the business, and to provide related documents and information as requested. Franchisees must also supply copies of all inspection reports, warnings, certificates, and ratings issued by any governmental entity concerning the business within three days of receipt.
Furthermore, franchisees are obligated to submit other financial statements, budgets, forecasts, reports, records, copies of contracts, documents related to litigation, tax returns, copies of governmental permits, and any other documents and information related to the business as specified in the Manual or reasonably requested by Desi District. Within 120 days after opening, franchisees must provide a report detailing their investment costs to develop and open the business, allocated to categories described in Item 7 of the Franchise Disclosure Document, along with any other information Desi District may request. Franchisees must also keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents for at least three years, and such other business records as Desi District Franchise Group may specify in the Manual or otherwise in writing.