What periodic financial reports must a Fly To Fit franchisee provide?

According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are required to submit periodic financial reports to Fly To Fit Franchise. These reports include a monthly profit and loss statement and balance sheet, which must be submitted within 30 days after the end of each calendar month. Additionally, franchisees must provide an annual financial statement, including a profit and loss statement, cash flow statement, and balance sheet, within 90 days after the end of Fly To Fit Franchise's fiscal year.

Fly To Fit also requires franchisees to submit any information requested to help prepare a financial performance representation for Fly To Fit Franchise's franchise disclosure document. This ensures that Fly To Fit has the necessary data to accurately represent the financial performance of its franchises to potential franchisees.

Furthermore, Fly To Fit retains the right to examine and audit all books and records related to the franchisee's business at any reasonable time. Franchisees are obligated to maintain complete and accurate financial records for at least three years, including supporting documentation such as payroll records, tax returns, sales invoices, and bank statements. If an audit is conducted due to a franchisee's failure to submit required reports or non-compliance, or if the audit reveals understated gross sales by 3% or more for any 4-week period, the franchisee is responsible for reimbursing Fly To Fit for all costs and expenses associated with the audit. These requirements ensure transparency and accountability in financial reporting within the Fly To Fit franchise system.