factual

If a Dickeys Barbecue Pit franchisee wants to use an accounting firm not on Dickey's

Dickeys_Barbecue_Pit Franchise · 2024 FDD

Answer from 2024 FDD Document

If you prefer to use an accounting firm that is not on Dickey's approved list, you must submit the accountant's information and your contract with the accounting firm to Dickey's for its approval prior to engaging the accountant.

Dickey's may withhold its approval if Dickey's determines (in its judgment) that your proposed accountant does not demonstrate the experience, credentials or qualifications necessary to provide accounting services for your Restaurant and the System.

Source: Item 22 — CONTRACTS (FDD pages 95–96)

What This Means (2024 FDD)

According to Dickey's Barbecue Pit's 2024 Franchise Disclosure Document, franchisees are generally required to use an accounting firm approved by Dickey's. Dickey's Barbecue Pit can limit the approved list to an exclusive source, potentially including an affiliate or subsidiary of Dickey's. This means that franchisees may not have a choice in selecting their accounting firm and may be required to use a specific provider designated by the franchisor.

However, if a Dickey's Barbecue Pit franchisee prefers to use an accounting firm that is not on the approved list, they must submit the accountant's information and their contract with the accounting firm to Dickey's for approval before engaging the accountant. Dickey's Barbecue Pit retains the right to withhold approval if it determines, in its judgment, that the proposed accountant lacks the necessary experience, credentials, or qualifications to provide accounting services for the restaurant and the Dickey's system.

This approval process ensures that all accounting practices meet Dickey's Barbecue Pit's standards and requirements, which can help maintain consistency and accuracy across all franchised locations. While this requirement might limit a franchisee's autonomy in choosing service providers, it also aims to protect the integrity and financial health of the Dickey's Barbecue Pit brand. Prospective franchisees should consider this requirement and the potential costs associated with using a mandated accounting firm when evaluating the overall investment and operational aspects of the franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.