factual

When is the deadline for Fitstop franchisees to provide financial statements each year?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 6.10 Right to Audit and/or Inspect. In addition, we reserve the right to audit your financial information quarterly upon reasonable demand and require that you provide to us on or before April 15 of each year a copy of the Franchise's financial statements, including profit and loss statements, that are reasonably requested by us.
  • 13.13 Accounting System; Chart of Accounts. You must establish and maintain an accounting system incorporating the chart of accounts, methods, procedures, forms and equipment satisfactory to us by which you will keep and make available to us your complete and accurate financial records.

Without limiting the obligation imposed under this section, you must:

  • 13.13.1 deliver to us (in the form and method prescribed by us) a written statement of Gross Revenue and other consolidated information requested by us for each month within seven (7) calendar days of the end of that month;

  • 13.13.5 provide us with annual accounts in respect of the Franchise (including balance sheets and profit and loss statements and, if applicable, reports of your auditors) within 90 calendar days of the end of each Financial Year; and

  • 13.13.6 provide us with monthly revenue figures and quarterly copies of your profit and loss statements for the quarter.

  • 13.14 Certification of Records. You must, if requested by us, obtain your accountant's certification of any one or more of the financial documents before submission to us.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must provide a copy of their financial statements to Fitstop on or before April 15th of each year. These financial statements should include profit and loss statements and any other information reasonably requested by Fitstop.

In addition to the annual financial statements, Fitstop franchisees are also required to deliver a written statement of Gross Revenue and other consolidated information requested by Fitstop for each month within seven calendar days of the end of that month. Franchisees must also provide Fitstop with annual accounts in respect of the Franchise (including balance sheets and profit and loss statements and, if applicable, reports of your auditors) within 90 calendar days of the end of each Financial Year; and provide us with monthly revenue figures and quarterly copies of your profit and loss statements for the quarter.

Fitstop also retains the right to audit a franchisee's financial information quarterly upon reasonable demand. If requested by Fitstop, the franchisee must obtain their accountant's certification of any of the financial documents before submitting them to Fitstop. Franchisees are also obligated to maintain an accounting system that is satisfactory to Fitstop, incorporating the chart of accounts, methods, procedures, forms, and equipment that Fitstop deems necessary for keeping complete and accurate financial records.

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.