What accounting principles must a Hawaiian Bros Island Grill franchisee adopt?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 30 days after the end of each month or other time period as may be communicated by Company from time to time, Franchisee must furnish Company with a balance sheet and profit and loss and cash flow statements for the Franchised Restaurant for the applicable time period.
Franchisee will maintain complete and accurate books and records relating to the operation of the Franchised Restaurant in accordance with Section 7(d)(22) and Section 7(d)(25), permit Company representatives to inspect such books and records at reasonable times and, within 45 days after the end of each fiscal year of the Franchised Restaurant (90 days if required to be audited or reviewed), submit to Company a balance sheet, income statement and statement of cash flow for the year then ended.
These financial statements must be prepared by an independent certified public accountant, disclose separately the items specified by Company on forms it provides and be prepared in accordance with the accounting principles and practices Company prescribes, and be compiled, reviewed or audited at Company's election.
If Franchisee is at any time required to furnish any lender, lessor, government agency or other person any financial statements with respect to Franchisee's franchised business, Franchisee must concurrently furnish Company a copy of such financial statements.
Franchisee must maintain for at least three years from the dates of their preparation full, complete, and accurate books, records, and accounts, including, but not limited to, sales slips, coupons, purchase orders, check stubs, bank statements, sales tax records and returns, cash receipts and disbursements, journals and ledgers in accordance with Company's requirements.
Franchisee acknowledges that Company may disclose publicly anonymized or aggregated results of operations and other information of Hawaiian Bros Island Grill franchisees, including Franchisee, and certain former Hawaiian Bros Island Grill franchisees, and Franchisee gives Company permission to do so.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, franchisees must adhere to specific accounting principles and practices as prescribed by the company. Franchisees are required to furnish Hawaiian Bros Island Grill with a balance sheet, profit and loss statement, and cash flow statements within 30 days after the end of each month or other communicated time period. Additionally, within 45 days after the end of each fiscal year (or 90 days if an audit or review is required), franchisees must submit an annual balance sheet, income statement, and statement of cash flow.
These financial statements must be prepared by an independent certified public accountant and disclose items specified by Hawaiian Bros Island Grill on provided forms. The statements must align with the accounting principles and practices that Hawaiian Bros Island Grill prescribes, and they may be compiled, reviewed, or audited at the company's discretion. Franchisees must also provide Hawaiian Bros Island Grill with copies of any financial statements they are required to furnish to lenders, lessors, government agencies, or other persons concerning their franchised business.
Furthermore, franchisees are obligated to maintain complete and accurate books and records for at least three years from their preparation date. These records include sales slips, coupons, purchase orders, check stubs, bank statements, sales tax records and returns, cash receipts and disbursements, journals, and ledgers, all in accordance with Hawaiian Bros Island Grill's requirements. Hawaiian Bros Island Grill also reserves the right to disclose publicly anonymized or aggregated results of operations and other information from its franchisees, including current and former franchisees, with the franchisee's permission.