What should be included in the monthly financial statements for a Floyds 99 shop?

According to Floyds 99's 2025 Franchise Disclosure Document, the monthly financial statements must include any data, information, and supporting records reasonably requested by the Franchisor. This includes, without limitation, daily, weekly, or monthly reports of inventory and sales by category. This means that franchisees need to be prepared to provide detailed breakdowns of their sales and inventory data on a regular basis.

Floyds 99 has the right to disclose data derived from all financial and accounting reports received from the Franchisee to the other franchisees and affiliates in the FLOYD'S 99 system with information identifying the Franchisee. Floyds 99 also reserves the right to disclose data derived from the Franchisee's financial and accounting reports to parties outside of the FLOYD'S 99 system, without identifying the Franchisee, except to the extent identification of the Franchisee is required by law. The Franchisee consents to the Franchisor obtaining financial and account information regarding the Barbershop and its operations from third parties with whom the Franchisee does business, as and when deemed necessary by the Franchisor.

Each report and financial statement submitted to Floyds 99 must be signed and verified by the franchisee, either manually or electronically. Franchisees must maintain all books and records for their Floyds 99 shop in a manner prescribed by the franchisor, prepare annual balance sheets and profit and loss statements in accordance with Generally Accepted Accounting Principles (GAAP), and preserve these records for at least five years after the fiscal year to which they relate. Floyds 99 also has the right to inspect and audit the books and records of the shop at any reasonable time, at the franchisor's expense.

If an audit reveals a deficiency in payments owed to Floyds 99, these amounts become immediately payable with interest from the original due date. The interest rate is the lesser of 1½% per month or the maximum rate allowed by law. This underscores the importance of maintaining accurate financial records and ensuring timely payments to avoid penalties and potential legal issues.