Does Lees Famous Recipe require me to use numerically sequenced invoices, and if so, who must approve them?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- establish filing, accounting and inventory control systems complying with our requirements;
KK. "Records" means (1) monthly and annual chart of accounts; (2) monthly income statements; (3) monthly balance sheet and profit and loss statements; (4) monthly bank statements; (5) all annual tax returns relating to the Restaurant and each of its Principal Owners; (6) a complete annual financial statement (which, at our request, must be audited), including a balance sheet, profit and loss statement, and statement of cash flows, prepared in accordance with generally accepted accounting principles by an independent certified public accountant satisfactory to us and showing the results of your operations during such fiscal year; (7) any statistical or financial information regarding the operation of the Franchised Business, the Products and services sold by it, or data of a similar nature, including without limitation, any financial data that we believe that we need to compile or disclose in connection with the sale of franchises or that we may elect to disclose in connection with the sale of franchises and any or all product or equipment supply invoices reflecting purchases by or on behalf of the Franchised Business, and (8) such other records and information as we periodically may request.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Lees Famous Recipe does not explicitly state that franchisees must use numerically sequenced invoices. However, the FDD does state that franchisees must establish filing, accounting, and inventory control systems that comply with Lees Famous Recipe's requirements.
Furthermore, franchisees must provide Lees Famous Recipe with various records, including monthly income statements, balance sheets, profit and loss statements, bank statements, annual tax returns, and a complete annual financial statement prepared by an independent certified public accountant. Franchisees must also provide product or equipment supply invoices reflecting purchases by or on behalf of the franchised business, and such other records and information as Lees Famous Recipe may periodically request.
While the FDD does not specify the use of numerically sequenced invoices, it's possible that this requirement could be part of the accounting and inventory control systems mandated by Lees Famous Recipe or included in the additional records they may request. Prospective franchisees should clarify with Lees Famous Recipe whether numerically sequenced invoices are required and, if so, what approval process is involved.