How must a Floyds 99 franchisee maintain their books and records?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.4 Books and Records.
The Franchisee shall maintain all books and records for its FLOYD'S 99 Shop in a manner as reasonably prescribed by the Franchisor, shall prepare all annual balance sheets and profit and loss statements in accordance with GAAP, consistently applied, and shall preserve these records for at least five years after the fiscal year to which they relate.
- 17.5 Audit of Books and Records.
The Franchisee shall permit the Franchisor to inspect and audit the books and records of the FLOYD'S 99 Shop at any reasonable time, at the Franchisor's expense.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees must maintain all books and records for their Floyds 99 shop in a manner reasonably prescribed by the franchisor. This means Floyds 99 has the right to set standards for how franchisees organize and keep their financial data.
The FDD specifies that franchisees must prepare annual balance sheets and profit and loss statements in accordance with Generally Accepted Accounting Principles (GAAP). GAAP provides a common set of accounting principles, standards, and procedures that companies must follow when compiling their financial statements. This ensures consistency and comparability across different businesses.
Floyds 99 franchisees are also obligated to preserve these financial records for at least five years after the fiscal year to which they relate. This retention period ensures that the franchisee can provide necessary documentation for audits, legal compliance, and other business needs. The franchisor also has the right to inspect and audit these records at any reasonable time, at the franchisor's expense.