What must Fitstop franchisees do regarding their public accountant and certified public accountant?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
The profit and loss statement and the balance sheet shall, if we shall request certification, be certified by a certified public accountant.
You shall at your expense cause your public accountant and certified public accountant, if any, to consult with us concerning such statement and balance sheet.
The original of each such report required by this Section shall be mailed to us at our then-current corporate headquarters.
We shall have the right to inspect and/or audit your accounts, books, records, and tax returns at all reasonable times to ensure that you are complying with the terms of this Agreement.
If such inspection discloses that Gross Revenue actually exceeded the amount reported by you as Gross Revenue by an amount equal to two percent (2%) or more of Gross Revenue originally reported to us, you shall bear the cost of such inspection and audit.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to take specific actions involving their public accountant and certified public accountant. If Fitstop requests certification of the profit and loss statement and balance sheet, the franchisee must ensure this is done by a certified public accountant.
Furthermore, franchisees are obligated to ensure that their public accountant and certified public accountant (if they have one) consult with Fitstop regarding the aforementioned financial statements. The franchisee is responsible for covering the expenses associated with this consultation. The original reports required must be mailed to Fitstop's corporate headquarters.
Fitstop also retains the right to inspect and audit the franchisee's accounts, books, records, and tax returns at reasonable times to verify compliance with the franchise agreement. Should an inspection reveal that the franchisee's reported gross revenue is understated by 2% or more, the franchisee will bear the cost of the inspection and audit. These stipulations ensure that Fitstop maintains oversight of financial reporting and compliance within its franchise network.