What periodic financial reports must a Desi District franchisee provide?

According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to submit specific periodic financial reports to Desi District Franchise Group. These reports include a monthly profit and loss statement and balance sheet for the business, which must be submitted within 30 days after the end of each calendar month. Additionally, franchisees must provide an annual financial statement, including a profit and loss statement, cash flow statement, and balance sheet, within 90 days after the end of Desi District Franchise Group's fiscal year.

Furthermore, Desi District requires franchisees to submit any information requested to help prepare a financial performance representation for Desi District's Franchise Disclosure Document. This ensures that Desi District has the necessary data to accurately represent the financial performance of its franchises to potential franchisees.

In addition to these periodic reports, franchisees must also submit an initial investment report within 120 days after opening for business. This report should detail the franchisee's investment costs to develop and open the business, allocating costs to the categories described in Item 7 of the Franchise Disclosure Document, along with any other information Desi District may request. These reporting requirements are typical in franchising, allowing the franchisor to monitor the financial health and performance of individual units and the overall franchise system.