How frequently must a Learningrx franchisee prepare profit and loss statements, and who must prepare the annual statement?

According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to prepare profit and loss statements at least quarterly. The annual profit and loss statement, however, must be prepared by an independent Certified Public Accountant (CPA).

This requirement ensures that Learningrx franchisees maintain accurate and up-to-date financial records, allowing both the franchisee and the franchisor to monitor the financial health of the business. The quarterly statements provide a regular snapshot of performance, while the annual statement offers a more comprehensive review.

Having an independent CPA prepare the annual statement adds a layer of objectivity and credibility to the financial reporting. This can be beneficial for securing financing, managing taxes, and ensuring compliance with accounting standards. It also helps Learningrx maintain consistent financial reporting across all franchise locations.

For a prospective Learningrx franchisee, this means budgeting for the cost of engaging a CPA each year. While the quarterly statements can be prepared internally, the annual statement requires professional expertise. Failing to comply with these reporting requirements could result in penalties or other consequences as outlined in the franchise agreement.