What specific records must a Hck Hot Chicken franchisee keep?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
10.4 Books and Records. Franchisee shall maintain an accounting and record keeping system, in accordance with sound business practices, which shall provide for basic accounting information necessary to prepare financial statements, a general ledger, and reports required by this Agreement and the HCK Hot Chicken Brand Standards Manual. Franchisee shall maintain accurate, adequate, and verifiable books and supporting documentation relating to such accounting information.
Franchisee shall prepare, and keep for not less than three years following the end of each of its fiscal years, or such longer period required under Applicable Law, adequate books and records showing daily receipts in, at, and from the Franchised Restaurant, applicable sales tax returns (if any), all pertinent original serially numbered sales slips and cash register records, and such other sales records as may be reasonably required by Franchisor from time to time to verify Gross Sales and purchases reported by Franchisee to Franchisor, in a form suitable for an audit of its records by an authorized auditor or agent of Franchisor.
Such information shall be broken down by categories of goods, foods and beverages sold, where possible.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees must maintain a detailed accounting and record-keeping system that adheres to sound business practices. This system should provide the basic accounting information needed to prepare financial statements, a general ledger, and all reports required by the Franchise Agreement and the Hck Hot Chicken Brand Standards Manual. Franchisees are responsible for keeping accurate, adequate, and verifiable books and supporting documentation related to this accounting information.
Specifically, Hck Hot Chicken franchisees must keep adequate books and records showing daily receipts from the franchised restaurant, applicable sales tax returns (if any), all pertinent original serially numbered sales slips and cash register records, and any other sales records reasonably required by Hck Hot Chicken to verify gross sales and purchases. These records must be kept for at least three years following the end of each fiscal year, or longer if required by applicable law. The information should be broken down by categories of goods, foods, and beverages sold, where possible.
These record-keeping requirements are fairly standard in the franchise industry, as they allow the franchisor to monitor the financial performance of the franchise and ensure compliance with the franchise agreement. Prospective Hck Hot Chicken franchisees should be prepared to invest in a robust accounting system and maintain meticulous records to meet these requirements. Failure to maintain proper records or submit required reports can result in penalties, including fees and audits at the franchisee's expense. Hck Hot Chicken may also access the Information Systems and stored files, and to add, remove, configure, and modify information systems.