How should the monthly financial statements for a Floyds 99 shop be prepared?

According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must prepare monthly financial statements in accordance with Generally Accepted Accounting Principles (GAAP). These statements must be consistently applied and use the forms and chart of accounts prescribed by Floyds 99. The monthly financial statements should include a profit and loss statement and a balance sheet for either the specific Floyds 99 shop or the franchisee's entity. These statements must be mailed or otherwise forwarded to Floyds 99 no later than the 15th day following the end of the month, and they should be based on the operating results of the previous month. The statements must also be submitted in a form approved by Floyds 99.

This level of detail ensures that Floyds 99 has a consistent and accurate view of each franchise's financial performance. By adhering to GAAP and using Floyds 99's specific forms and chart of accounts, the franchisor can easily compare the financial results of different locations and identify any potential issues or areas for improvement. The franchisee needs to ensure they are using accounting software or services that can produce reports in the required format and comply with GAAP standards.

Submitting these reports on time is crucial, as delays could lead to penalties or further scrutiny from Floyds 99. The requirement to provide financial statements in a form approved by Floyds 99 means that franchisees must stay updated on any changes to the reporting format or requirements. Overall, this detailed reporting structure allows Floyds 99 to maintain financial oversight and support the success of its franchisees through informed decision-making.