What accounting standard must the annual financial statement of a Face Foundrie Area Developer follow?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
5.3.2 On April 15th of the year following the end of Area Developer's fiscal year, a complete annual financial statement (prepared according to generally accepted accounting principles), on a compilation basis, and if required by Franchisor, such statements shall be prepared by an independent certified public accountant.
5.4 Maintaining Records*.* Area Developer shall maintain during the term of this Agreement, and shall preserve for at least seven (7) years from the dates of their preparation, and shall make available to Franchisor at Franchisor's request and at Area Developer's expense, full, complete, and accurate books, records, and accounts in accordance with generally accepted accounting principles.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an Area Developer must adhere to specific accounting standards for their financial reporting. The annual financial statement must be prepared according to generally accepted accounting principles (GAAP). This ensures consistency and comparability in financial reporting.
In addition to the annual financial statement, Face Foundrie requires Area Developers to submit monthly profit and loss statements. These statements must also be prepared on an accrual basis and in accordance with generally accepted accounting principles. This provides Face Foundrie with regular insights into the financial performance of each franchised facial bar.
Furthermore, Face Foundrie mandates that Area Developers maintain full, complete, and accurate books, records, and accounts in accordance with generally accepted accounting principles during the term of the agreement. These records must be preserved for at least seven years from the date of their preparation and be made available to Face Foundrie upon request, at the Area Developer's expense. This rigorous record-keeping requirement ensures transparency and accountability in financial matters.