What is the deadline for Fitstop franchisees to submit a profit and loss statement after the close of each fiscal year?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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;
13.13.2 deliver to us (in the form and method prescribed by us) member information collected by you;
13.13.3 inform us in writing of changes to your retail price for the services at least 30 calendar days before the price change takes effect;
13.13.4 comply with any other accounting and reporting obligations as set out in Manual(s);
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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must provide annual accounts, including balance sheets and profit and loss statements, within 90 calendar days of the end of each financial year. This means a Fitstop franchisee has approximately three months after their financial year concludes to compile and submit these essential financial documents to Fitstop.
In addition to the annual accounts, 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. They must also provide monthly revenue figures and quarterly copies of their profit and loss statements for the quarter. These ongoing reporting requirements ensure that Fitstop has a consistent and up-to-date view of each franchise's financial performance.
Fitstop also retains the right to inspect and audit a franchisee's accounts, books, records, and tax returns at all reasonable times to ensure compliance with the franchise agreement. If an inspection reveals that the Gross Revenue reported by the franchisee is less than the actual Gross Revenue by 2% or more, the franchisee will bear the cost of the inspection and audit. This clause incentivizes accurate and transparent financial reporting from Fitstop franchisees.