Does Fly To Fit Franchise have the right to request budgets and forecasts from Fly To Fit franchisees?

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has the right to request budgets and forecasts from its franchisees. Specifically, franchisees are required to submit financial statements, budgets, forecasts, reports, records, copies of contracts, documents related to litigation, tax returns, copies of governmental permits, and other documents and information related to the business as specified in the manual or that Fly To Fit may reasonably request.

This means that as a Fly To Fit franchisee, you must be prepared to provide a wide range of financial and operational documents to Fly To Fit upon request. This includes not only historical data like financial statements and tax returns but also forward-looking projections like budgets and forecasts. The scope of information Fly To Fit can request is broad, covering essentially any aspect of the business.

It is important for prospective franchisees to understand that Fly To Fit retains significant oversight and control over the financial aspects of the franchise. Franchisees should maintain organized and accurate records to readily comply with these requests. Failure to provide the requested information could potentially lead to non-compliance and further action from the franchisor.

Furthermore, Fly To Fit also has the right to examine and audit all books and records related to the business at any reasonable time. Franchisees may also be responsible for reimbursing Fly To Fit for all costs and expenses of the examination or audit if the audit reveals that the franchisee understated Gross Sales by 3% or more for any 4-week period.