When is the deadline for a Moes Southwest Grill franchisee to furnish a profit and loss statement?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
, procedures, and formats, if any; (ii) timely submit to us complete and accurate financial, operational, and other reports we require (including weekly reports detailing the Gross Sales and Net Sales during the preceding week and monthly profit and loss statements for the prior month's operations); and (iii) use all forms we specify. You must submit any report by mail, telephone, electronic means, or any other means we may designate. For purposes of reporting to us only and not for purposes of calculating Royalty Fees and Advertising Contributions due, "Gross Sales" means Net Sales, plus the amount of any discounts from redemptions of coupons, and other reductions made to calculate Net Sales.
- 14.4 Financial Statements. On or before February 1st of each year (or such other date specified by us in the Manuals or otherwise in writing, which may be by email or other electronic communications), you must furnish to us a statement of the profit and loss of the Franchised
Business for the last fiscal year and a balance sheet as of the end of the last fiscal year, prepared in accordance with our requirements and certified by you to be true and correct. We have the right to demand audited financial statements if a financial-related default has occurred under this Agreement within the last calendar year.
- 14.5 Tax Returns. No later than 90 days following our request, you must furnish to us exact copies of all tax returns, including federal, state, and any local income tax returns relating to the Franchised Business or you or your Entity.
- 14.6 Financial Records.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are required to submit a profit and loss statement for the last fiscal year, along with a balance sheet, to Moe's Southwest Grill on or before February 1st of each year. This deadline may be subject to change if Moe's Southwest Grill specifies a different date in the Manuals or in writing, which could include email or other electronic communications. The financial statements must be prepared according to Moe's Southwest Grill's requirements and certified by the franchisee as true and correct.
Moe's Southwest Grill retains the right to demand audited financial statements from a franchisee if a financial-related default has occurred under the Franchise Agreement within the last calendar year. This provision ensures that Moe's Southwest Grill can closely monitor the financial health of its franchisees, especially in cases where there have been prior defaults.
In addition to the annual profit and loss statement, Moe's Southwest Grill also requires franchisees to furnish exact copies of all tax returns, including federal, state, and local income tax returns, within 90 days of the franchisor's request. Franchisees must also maintain accurate and complete financial records, including books, records, tax returns, and supporting documentation, for at least three years, and these records must not be commingled with records from other businesses. These requirements enable Moe's Southwest Grill to maintain oversight of its franchisees' operations and ensure compliance with financial reporting standards.