What other business records must a Fly To Fit franchisee keep?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.4 Business Records. Franchisee shall keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents (including, but not limited to, payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks and paid invoices) for at least three years. Franchisee shall keep such other business records as Fly To Fit Franchise may specify in the Manual or otherwise in writing.
- 10.5 Records Audit. Fly To Fit Franchise may examine and audit all books and records related to the Business, and supporting documentation, at any reasonable time. Fly To Fit Franchise may conduct the audit at the Location and/or require Franchisee to deliver copies of books, records and supporting documentation to a location designated by Fly To Fit Franchise. Franchisee shall also reimburse Fly To Fit Franchise for all costs and expenses of the examination or audit if (i) Fly To Fit Franchise conducted the audit because Franchisee failed to submit required reports or was otherwise not in compliance with the System, or (ii) the audit reveals that Franchisee understated Gross Sales by 3% or more for any 4-week period.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees must maintain complete and accurate books and records that reflect all expenditures and receipts of the business. These records must be supported by documentation such as payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks, and paid invoices. These financial records and supporting documents must be retained for at least three years.
In addition to the specific records listed, Fly To Fit franchisees are also required to keep any other business records that Fly To Fit specifies in the Manual or otherwise provides in writing. This allows Fly To Fit to request additional documentation or information as needed to monitor the franchisee's compliance and performance.
Fly To Fit retains the right to examine and audit all books and records related to the Fly To Fit business at any reasonable time. This audit can occur at the franchisee's location or require the franchisee to deliver copies of the records to a location designated by Fly To Fit. The franchisee may be responsible for covering the costs of the audit if they failed to submit required reports, were non-compliant with the Fly To Fit system, or if the audit reveals that the franchisee understated gross sales by 3% or more for any 4-week period.