By what day of the month must a Floyds 99 franchisee submit monthly financial statements?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
17. REPORTS, RECORDS AND FINANCIAL STATEMENTS
- 17.1 Franchisee Reports. The Franchisee shall establish and maintain, at its own expense, bookkeeping, accounting and data processing systems which conform to the specifications that the Franchisor may prescribe from time to time. Each transaction of the Barbershop shall be processed in the manner prescribed by the Franchisor. The Franchisor shall have the right of independent access to all data with respect to the Barbershop. The Franchisor reserves the right to require the Franchisee to provide the Franchisor with access to the Franchisee's data by installing a modem or joining and paying for an electronic network connection service which meets the Franchisor's standards and specifications. The Franchisee shall supply to the Franchisor such types of reports in a manner and form as the Franchisor may from time to time reasonably require, including:
- a. by a designated day of each week a report on the Barbershop's Gross Sales for the previous week;
- b. monthly financial statements, prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), consistently applied, using the forms and chart of accounts as prescribed by the Franchisor, which shall include a profit and loss statement and balance sheet for the FLOYD'S 99 Shop or for the Franchisee entity, mailed or otherwise forwarded to the Franchisor by no later than the 15th day following the end of the month, based
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees must submit monthly financial statements to the Franchisor no later than the 15th day following the end of the month. These statements must be prepared in accordance with Generally Accepted Accounting Principles (GAAP). The franchisee must use the forms and chart of accounts prescribed by Floyds 99. The financial statements should include a profit and loss statement and balance sheet for the Floyds 99 shop or the franchisee entity.
This requirement ensures that Floyds 99 has consistent and timely access to the financial performance of each franchise location. By adhering to GAAP standards and using the franchisor's prescribed forms, Floyds 99 aims to maintain uniformity and accuracy in financial reporting across all its franchise units. This allows the franchisor to effectively monitor the financial health of individual locations and the overall franchise system.
For a prospective Floyds 99 franchisee, this means establishing and maintaining sound bookkeeping, accounting, and data processing systems that meet Floyds 99's specifications. It also implies a commitment to preparing and submitting accurate financial reports on a monthly basis, adhering to the specified deadlines and accounting standards. Failure to comply with these reporting requirements could potentially lead to penalties or other consequences as outlined in the franchise agreement.