What quarterly financial documents must Fitstop franchisees provide?
Fitstop Franchise · 2024 FDDAnswer 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.
13.13.1 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.
13.13 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.
You must, if requested by us, obtain your accountant's certification of any one or more of the financial documents before submission to us.
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 provide quarterly copies of their profit and loss statements. Additionally, Fitstop retains the right to audit a franchisee's financial information quarterly upon reasonable demand.
Furthermore, Fitstop franchisees must 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 annual accounts, including balance sheets and profit and loss statements (along with auditor reports if applicable), within 90 calendar days of the end of each Financial Year.
Fitstop also requires franchisees to establish and maintain an accounting system that incorporates a chart of accounts, methods, procedures, forms, and equipment satisfactory to Fitstop. This system ensures that franchisees keep complete and accurate financial records available to Fitstop. If requested by Fitstop, franchisees must obtain their accountant's certification of any financial documents before submission. 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.