Are Endless Summer Sweets franchisees required to submit budgets to the franchisor?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay all taxes when due.
If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due.
If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
7.17 Public Relations. Without Franchisor's prior written approval, which will not be unreasonably withheld, Franchisee shall not make any public statements, including without limitation interviews or issuing press releases, regarding Franchisor, the Business, or any particular incident or occurrence related to the Business.
7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without Franchisor's prior written approval, which will not be unreasonably withheld.
7.19 No Other Activity Associated with the Business. Franchisee shall not engage in any business or other activity at the Location other than operation of the Endless Summer Sweets Business.
Franchisee shall not use assets of the Business for any purpose other than the Business.
If Franchisee is an entity, the entity shall not own or operate any other business except the Endless Summer Sweets businesses.
7.20 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of Franchisor, which will not be unreasonably withheld.
7.21 Identification. Franchisee must identify itself as the independent owner of the Business in the manner prescribed by Franchisor.
Franchisee must display at the Business signage prescribed by Franchisor identifying the Location as an independently owned franchise.
- 7.22 Business Practices. Franchisee, in all interactions with customers, employees, vendors, governmental authorities, and other third parties, shall be honest and fair.
Franchisee shall comply with any code of ethics or statement of values from Franchisor.
Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 7. SUPPLIERS AND VENDORS
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, it is not clear whether Endless Summer Sweets franchisees are required to submit budgets to the franchisor. While the FDD excerpts cover various aspects of the franchisee's obligations, including financial matters like payment of taxes, compliance with loan terms, and adherence to lease agreements, it does not explicitly state that franchisees must prepare and submit budgets to the franchisor for review or approval.
However, the FDD does mention that the franchisor advises franchisees regarding the planning and execution of their market introduction plan. This suggests that there may be some level of financial planning and reporting involved in the initial stages of the franchise operation. Additionally, franchisees are required to comply with any code of ethics or statement of values from the franchisor, which could potentially include guidelines related to financial management and reporting.
To gain a comprehensive understanding of the budgetary requirements, prospective Endless Summer Sweets franchisees should directly inquire with the franchisor about whether franchisees are required to submit budgets, the format and frequency of such submissions, and how the franchisor uses this information to support franchisees. It would also be beneficial to discuss this topic with existing franchisees to learn about their experiences and best practices in financial planning and reporting.