Can the Franchisor change the 'Accounting Period' for a Dryer Vent Squad franchisee?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Opening Date, or (b) the Actual Opening Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a monthly period for each and every month throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the franchisor has the authority to determine and modify the 'Accounting Period' for franchisees. The 'Accounting Period' is defined as the timeframe Dryer Vent Squad selects for franchisees to measure, report financial information, and fulfill payment obligations.
Dryer Vent Squad determines the applicable measurement period for franchisees to report financial data and pay fees under the Franchise Agreement. These periods can be weekly, monthly, or otherwise, as designated by Dryer Vent Squad. These accounting periods automatically begin on the earlier of the Scheduled Opening Date or the Actual Opening Date of the Franchised Business and continue throughout the term of the agreement.
Unless Dryer Vent Squad specifies otherwise, the accounting period is a monthly period for each month during the agreement's term. This means that Dryer Vent Squad retains the right to alter the accounting period at any time, impacting when franchisees must report financial information and make payments.