Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting records and supporting documentation relating to the Franchised Business. B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarter, in the form approved by Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Franchisee shall, at its expense, submit to Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statements. C. Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or otherwise in writing. D. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, to examine and copy, at its expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the maximum rate permitted by law. If an inspection discloses an understatement in any report of two percent (2%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have. E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 3 contracts
Samples: Franchise Agreement (Newriders Inc), Franchise Agreement (Newriders Inc), Franchise Agreement (Newriders Inc)
Accounting and Records. A. Franchisee shall establish Beginning on the Effective Date and maintain a bookkeeping, accounting and record keeping system conforming to throughout the requirements prescribed by Franchisor, including without limitation the use and retention remainder of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting Franchisee shall maintain and preserve, for at least five (5) years from the dates of their preparation, full, complete and accurate books, records and supporting documentation relating accounts in accordance with generally accepted accounting principles consistently applied and in the form and manner prescribed in the Manual or otherwise in writing. Franchisee’s obligation to preserve such books, records and accounts shall survive the Franchised Businesstermination hereof.
B. Franchisee will supply shall, at Franchisee’s expense, submit to Franchisor on or before by the fifteenth (15th) day of each month after the term Opening Date, including the first partial month if the Opening Date is on other than the first day of each calendar quartera month, a statement covering the immediately preceding month in the form approved prescribed by Franchisor, a accurately reflecting all gross room revenues, the source and amounts of all other revenues generated at the Hotel, room occupancy and rates, reservations data, and such other data or information as Franchisor may require. Franchisor’s property management system may poll the Hotel’s room revenue results daily.
C. Upon the request of Franchisor, Franchisee shall, at Franchisee’s expense, submit to Franchisor an unaudited quarterly and/or annual profit and loss statement for the Hotel (in the form prescribed by Franchisor) and a balance sheet for within thirty (30) days of the last preceding calendar quarterend of each fiscal quarter and/or fiscal year during the term hereof. Additionally, Each statement shall be signed by Franchisee attesting that it is true and correct.
D. Franchisee shall, at its expense, submit to Franchisor, for review and audit, such other forms, periodic and other reports, records, information and data relating to Franchisee, the Hotel and the Hotel’s marketing, sales and guests as Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountantmay reasonably designate, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statements.
C. Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner form and at the time times and places reasonably required by Franchisor, upon request and as specified in the Confidential Operations Manual or otherwise in writing. Franchisor shall have the right to access the Hotel’s PMS and reservations system directly to obtain marketing, sales and guest information, and Franchisee shall take all actions necessary to provide such access.
D. E. Franchisor or its designated agents agent shall have the rightright at all reasonable times, during normal business hours and with or without prior noticeupon reasonable notice to Franchisee, to examine and copy, at its expense, the all books, records, accounts and tax returns of FranchiseeFranchisee related to the operation of the Hotel during the preceding five (5) years. Franchisor also shall also have the right right, at any time, and upon reasonable notice to Franchisee, to have an independent audit made of these books, accounts and records of Franchisee related to the books operation of Franchiseethe Hotel. Franchisee shall provide lodging, if available, without charge to Franchisor’s agents during the time as may reasonably be necessary to complete such audits and to render such other assistance as may reasonably be requested. If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor upon demand, the amount understated upon demand, in addition to plus interest from the date such amount was due until paid, at . The rate of interest shall be one and one-half percent (1 1/2%) per Accounting Period or the maximum rate permitted by law, whichever is less, from the date such amount was due. If an inspection discloses an understatement in any report of two three percent (23%) or moremore for the period being inspected, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' ’ fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have. If an inspection should reveal that Franchisee has made overpayments to Franchisor, the amount of any such overpayment, without interest, shall be credited against future payments due and payable to Franchisor by Franchisee hereunder.
E. F. Upon the request of Franchisor: (i) Franchisee, if a natural person or persons, shall submit to Franchisor, a list of all owners of this franchise and the interest held by each; (ii) Franchisee, if a partnership, shall submit to Franchisor, a list of all partners and the interest in Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement held by each; (iii) Franchisee, if a corporation, shall submit to accept any payments after same Franchisor a list of all shareholders and the interest in Franchisee held by each; provided, however if Franchisee’s shares are due publicly held, the list of shareholders required shall include only those who own five percent (5%) or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation more of the Franchised Business. Furthershares outstanding; or (iv) Franchisee, if a limited liability company, shall submit to Franchisor a list of all members of the limited liability company and the interest in Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein providedheld by each.
Appears in 2 contracts
Samples: Franchise Agreement, Franchise Agreement (Apple REIT Seven, Inc.)
Accounting and Records. A. Franchisee shall establish maintain during the term of this Agreement, and maintain a bookkeepingshall preserve for the time period specified in the Manual, full, complete and accurate books, records and accounts in accordance with the standard accounting system prescribed by Franchisor in the Manual or otherwise in writing. Franchisee shall retain during the term of this Agreement and record keeping system conforming for three (3) years thereafter all books and records related to the requirements prescribed by FranchisorFranchised Business including, including without limitation the use and retention of limitation, sales ticketschecks, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursementsdisbursement journals, journals general ledgers and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting any other financial records and supporting documentation relating to the Franchised Businessdesignated by Franchisor or required by law.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after of the term of each following calendar quartermonth, in the a form approved by Franchisor, a balance sheet as of the end of the last preceding calendar quarter and a profit and loss statement for such quarter and balance sheet for the last preceding calendar quarterFranchisee's fiscal year-to-date. Additionally, Franchisee shall, at its expense, submit to Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for as of the last date day of such fiscal year, prepared on an accrual basis including all adjustments necessary for fair presentation of the financial statements. Such financial statements will be certified to be true and correct by Franchisee. Franchisor requires, at Franchisee's expense, annual statements shall be financial statements, prepared and in accordance with generally accepted accounting standards, reviewed or audited by an independent certified public accountant, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisee shall supply to Franchisor reserves all federal and state income tax returns filed for the right to require Franchisee to submit audited financial statementsFranchised Business within thirty (30) days after such filing.
C. Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or as Franchisor shall otherwise require in writing from time to time.
D. Franchisee shall record all sales on a computerized inventory system approved by Franchisor or as may be designated by Franchisor in the Manual or otherwise in writing. Franchisee acknowledges that Franchisor shall have the right to require Franchisee to utilize computerized inventory systems which are fully compatible with any program or system which Franchisor, in its discretion, may employ. If Franchisor requires such computerized inventory systems, all Gross Sales and all sales information shall be recorded on such equipment. Franchisor shall have full access to all of Franchisee's data, system and related information by means of direct access whether in person, or by telephone/modem.
D. E. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its expense, the books, records, records and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books and records of FranchiseeFranchisee at Franchisor's expense. If an inspection or audit should reveal that any payments due to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the rate of eighteen percent (18%) per annum or the maximum rate permitted by law, whichever is greater. If an inspection or audit discloses an understatement in any report of two percent (2%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection or audit (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. F. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute a material default and grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. 11.1 Franchisee shall establish prepare, and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than at least three (3) years following from the term dates of this Agreementtheir preparation, all complete and accurate books, records, and accounts, in accordance with generally accepted accounting records and supporting documentation relating to the Franchised Businessprinciples.
B. 11.2 All Gross Sales and all sales tax and other charges collected on behalf of third parties shall be recorded by Franchisee will supply in accordance with the procedures prescribed in the Manuals on such point of sale systems as Franchisor may specify pursuant to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarterSection 7.7 above.
11.3 Franchisee shall submit to Franchisor, at Franchisee's expense, in the form approved prescribed by Franchisor:
11.3.1 By no later than Monday of each week, a profit complete and loss statement and balance sheet accurate report of Gross Sales for the last preceding calendar quarter. Additionallyweek, Franchisee shall, at its expense, submit to and such other weekly data as Franchisor within may reasonably require;
11.3.2 Within ninety (90) days of after the end of each fiscal year of Franchisee, an income statement showing the results of Franchisee's operations during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for as of the last date end of such fiscal year. Such annual statements , both of which shall be prepared in accordance with generally accepted accounting principles and reviewed by an independent certified public accountant. If, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves however, the right foregoing income statements and balance sheets are audited by an independent certified public accountant, then Franchisee shall furnish the audited income statements and balance sheets rather than the reviewed income statements and balance sheets; and
11.3.3 Interim unaudited income statements and balance sheets, not less often than quarterly, within forty-five (45) days after the end of the period to require Franchisee to submit audited financial statementswhich the statements relate.
C. Franchisee shall submit to 11.4 Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or otherwise in writing.
D. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right to examine and copy, at its Franchisor's expense, on reasonable notice and during normal business hours, the books, records, accounts, and sales tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal or audit reveals that any payments payment to Franchisor have has been understated in any report to Franchisorunderstated, then Franchisee shall immediately pay to Franchisor the amount understated upon demandowed, in addition to together with daily interest from the date such amount was due until paid, paid at the rate of eighteen percent (18%) per annum or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in or audit reveals any report underpayment by Franchisee of two percent (2%) or more, Franchisee shall, in additionaddition to payment of monies owed with interest, reimburse Franchisor for any and all costs and expenses connected with the inspection or audit (including, without limitation, expenses for travel, lodging and wages, and reasonable accounting and attorneys' feeslegal costs). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. Franchisee 10.01 Master Licensor shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and shall preserve for not less than three at least five (35) years following from the term dates of this Agreementtheir preparation, all full, complete, and accurate books, records, and accounts in accordance with generally accepted accounting records principles and supporting documentation relating to the Franchised Business.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarter, in the form approved and manner prescribed by Franchisor from time to time in the Manuals or otherwise in writing.
10.02 Master Licensor shall submit to Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Franchisee shall, at its expense, submit with each royalty payment to Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a report in the form prescribed by Franchisor, accurately reflecting all gross sales by Sublicensees during the period since the last report and such other data or information as Franchisor may require.
10.03 Master Licensor shall, at its expense, prepare a balance sheet and a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountantstatement, in accordance with generally accepted accounting principles applied principles, each quarter of Master Licensor's fiscal year. Such statement shall be provided to Franchisor, in a form prescribed by Franchisor, within thirty (30) days from the end of each quarter and shall be signed by Master Licensor attesting that it is true and correct.
10.04 Master Licensor shall, at its expense, provide to Franchisor a profit and loss statement, a balance sheet, and statement of changes in financial position prepared in accordance with generally accepted accounting principles, within sixty (60) days after the end of each fiscal year of the licensed business during the term hereof, showing the results of operations of the licensed business during such fiscal year. Such statement shall be signed by Master Licensor attesting that it is true and correct.
10.05 Master Licensor shall provide to Franchisor on a consistent monthly basis. Franchisor reserves , together with its royalty report, a report listing the right to require Franchisee to submit audited financial statementsfollowing information for the preceding month: new Sublicense Agreements which have been signed, including the name of the Sublicensee and the date of the Sublicense Agreement; stores opened, including the Store address and the date the Store opened; Store relocations; and all transferred, renewed and terminated Sublicense Agreements, showing the date of the action taken, the new Sublicensee, if any, and, in the case of termination of the Sublicense Agreement, the reason for termination.
C. Franchisee 10.06 Master Licensor shall also submit to Franchisor Franchisor, for review or auditing, such other periodic forms, reports, forms and records as specifiedrecords, information, and data as Franchisor may reasonably designate, in the manner form and at the time times and places reasonably required by Franchisor, upon request and as specified from time to time in the Confidential Operations Manual Manuals or otherwise in writing.
D. 10.07 Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its Franchisor's expense, the books, records, and tax returns of FranchiseeMaster Licensor. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of FranchiseeMaster Licensor. If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee Master Licensor shall immediately upon demand pay to Franchisor the amount understated upon demandunderstated, in addition to interest from the date such amount was due until paid, at two percent (2%) per month calculated on a daily basis, or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in any report of two percent (2%) or more, Franchisee Master Licensor shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Samples: Franchise Agreement (Moto Photo Inc)
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record record-keeping system procedures conforming to the requirements prescribed by FranchisorTA, including including, without limitation limitation, the use and retention of sales ticketschecks, cash register tapes, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general journals, general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement bank statements and for not less than three (3) years following the term of this Agreement, all accounting records and supporting documentation relating to the Franchised Businessdeposit slips.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarterTA, in the form approved specified by FranchisorTA, a monthly profit and loss statement by the twenty-fifth (25th) day of the month following each calendar month; and balance sheet a sales and sales tax report by the twenty-fifth (25th) day of each month, for the last preceding calendar quartermonth. Additionally, Franchisee shall, at its expense, shall submit to Franchisor TA within ninety (90) days of the end of each fiscal year during the term of this Franchise Agreement, a profit and loss statement for such fiscal year and a balance sheet for as of the last date day of such fiscal year, prepared on an accrual basis, including all adjustments necessary for fair presentation of the financial statements. Such annual financial statements shall shall, at Franchisee's expense, be compiled and prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied on standards by a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statementscertified public accountant.
C. Franchisee shall submit to Franchisor TA such other periodic reports, forms forms, information and records as specified, and in the manner and at the time as specified specified, in the Confidential Operations Manual or otherwise in writing.
D. Franchisor Franchisee shall keep true, complete and correct records of each transaction of any activity affecting revenues, discounts, inventory, sales and other related data of the Franchised Facility for a period of four (4) years from the date thereof.
E. TA or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its expense, the books, records, and tax returns of Franchisee. Franchisor TA shall also have the right at any time, time to have an independent audit made of the books of Franchisee. If an inspection should reveal that any payments to Franchisor TA have been understated in any report to FranchisorTA, then Franchisee shall immediately pay to Franchisor TA the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the maximum rate permitted by lawas specified in Section X(C). If an inspection discloses an understatement of three percent (3%) or more in any report period of two percent ninety (2%90) days or more, Franchisee shall, shall in addition, addition reimburse Franchisor TA for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor TA may have.
E. F. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement hereby agrees to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance obtain at Franchisee's operation of the Franchised Businessexpense, such cash registers, data terminals, printers, supplies and other equipment as required by TA from time to time. FurtherIf required by TA, Franchisee acknowledges that its failure also agrees to pay obtain, at Franchisee's expense, all amounts when due shall constitute grounds for termination of this Agreementmodems, as herein provideddata phone lines and necessary hardware, software and technical assistance to allow data communication between TA's host computer, if any, and Franchisee's equipment.
Appears in 1 contract
Accounting and Records. A. 14.1 Franchisee shall establish maintain and preserve any and all records in the manner and for such time as required by the Internal Revenue Service of the United States.
14.2 Franchisee shall maintain a bookkeeping, accounting daily Motor Fuel meter reading and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting records and supporting documentation relating to the Franchised Business.
B. Franchisee will supply provide such daily meter reading to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarter, a monthly report as prescribed in the form approved by Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Confidential Operations Manual.
14.3 Franchisee shall, at its expense, submit to Franchisor Franchisor, within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be financial statements, prepared and reviewed by an independent certified public accountant, accountant in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statementsprinciples.
C. 14.4 Franchisee shall provide Franchisor on or before the tenth (10th) day of each month a sales report specifying all Non-Fuel Revenue derived from and actual fuel gallonage purchased through the Franchised Business in a form approved by Franchisor. In order to assist Franchisor in monitoring the A/TS Network, Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and information requested by Franchisor from time to time in the manner and at the time as specified format prescribed by Franchisor in the Confidential Operations Manual or as Franchisor shall otherwise reasonably require in writing, including, but not limited to, state and federal fuel tax records by location and daily Motor Fuel meter readings by location.
D. 14.5 Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books and records of FranchiseeFranchisee at Franchisor's expense. If an inspection or audit should reveal that any payments due to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the rate of eighteen percent (18%) per annum or the maximum rate permitted by law, whichever is lower. If an inspection or audit discloses an understatement in any report of two percent (2%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection or audit (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have, including, but not limited to, termination or non-renewal pursuant to Paragraph XIX.
E. 14.6 Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute a materially significant default and grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers10.1. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting records and supporting documentation relating to the Franchised Business.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarter, in the form approved by Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Franchisee shall, at its expense, submit to Franchisor within ninety (90) days of the end of each fiscal year maintain during the term of this Agreement, a profit and loss statement shall preserve for such fiscal year at least four (4) years from the dates of their preparation, full, complete, and a balance sheet for the last date of such year. Such annual statements shall be prepared accurate books, records, and reviewed by an independent certified public accountant, accounts in accordance with generally accepted accounting principles applied on and in the form and manner prescribed by Franchisor from time to time in the Manual or otherwise in writing.
10.2. Franchisee shall prepare and maintain a consistent basisbusiness plan and operating budget in the manner prescribed by Franchisor, reflecting such information as Franchisor may specify, which may include, without limitation, operational data, personnel expense information, factors related to the costs of goods sold, capital expenditures, and revenue projections. Franchisee shall submit such business plan and operating budget to Franchisor at such times and places and in such form as may be prescribed by Franchisor.
10.3. Franchisee shall submit to Franchisor, no later than the fifteenth (15th) day of each month during the term of this Agreement, in a format and manner specified by Franchisor, monthly royalty and gross sales reports, and such other reports as Franchisor may require. Franchisor reserves the right to require Franchisee to submit audited financial statementscopies of all state sales tax returns for the Franchised Business to Franchisor.
C. 10.4. Franchisee shall, at its expense, provide to Franchisor, in a format specified by Franchisor, and in accordance with generally accepted accounting principles, a complete annual financial statement (including, without limitation, a profit and loss statement, cash flow statement and balance sheet), on a review basis, prepared by an independent certified public accountant satisfactory to Franchisor, within ninety (90) days after the end of each fiscal year of the Franchised Business showing the results of operations of the Franchised Business and the results of operations for any entity affiliated with the Franchised Business during said fiscal year. Franchisor reserves the right to require Franchisee to provide, at Franchisee’s expense, an audited annual financial statement, prepared by an independent certified public accountant satisfactory to Franchisor.
10.5. Franchisor reserves the right to require Franchisee, at Franchisee’s expense, to provide to Franchisor, in a format specified by Franchisor, quarterly or semi-annual financial statements (as described in Section 10.4 above), certified by an officer or accountant of Franchisee (and if specifically required by Franchisor, certified by an independent certified public accountant), and such other information as Franchisor may reasonably specify, showing the results of operations of the Franchised Business and the results of operations for any entity affiliated with the Franchised Business during said period. Franchisee shall submit such reports within forty-five (45) days following the end of each quarter or six-month period of each fiscal year of the Franchised Business during the term hereof. nufa-095 - 13 -
10.6. Franchisee shall also submit to Franchisor Franchisor, for review or auditing, such other periodic forms, reports, forms and records as specifiedrecords, information, and data as Franchisor may reasonably require, including but not limited to financial statements of each Franchisee and each Guarantor, in the manner form and at the time times and places reasonably required by Franchisor, upon Franchisor’s request and as specified from time to time in the Confidential Operations Manual or otherwise in writing. Franchisor reserves the right to require each Franchisee and each Guarantor to submit their respective federal and state income tax returns to Franchisor for review. Franchisee agrees that Franchisor may, and specifically grants Franchisor the right to, divulge any and all information submitted by Franchisee pursuant to this Section 10 or otherwise pertaining to Franchisee to third-party financing or lending sources being considered by Franchisee.
D. 10.7. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its Franchisor’s expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any payments to Franchisor or any affiliate have been understated in any report to Franchisor, or if Franchisee fails to expend any monies required under this Agreement, then Franchisee shall immediately pay to Franchisor the amount understated, or expend the amount required, upon demand by Franchisor. In addition, Franchisee shall pay interest on the understated upon demand, in addition to interest amount from the date such amount was due until paid, at the rate to be determined by Franchisor from time to time, or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in any report of two percent (2%) or more, or an underpayment of required expenditures (including, without limitation, royalties due pursuant to the Agreement) of two percent (2%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, travel, lodging and wage expenses, and reasonable accounting and attorneys' feeslegal costs). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. Franchisee shall establish Beginning on the Effective Date and maintain a bookkeeping, accounting and record keeping system conforming to throughout the requirements prescribed by Franchisor, including without limitation the use and retention remainder of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following the term of this Agreement, all accounting Franchisee shall maintain and preserve, for at least five (5) years from the dates of their preparation, full, complete and accurate books, records and supporting documentation relating accounts in accordance with generally accepted accounting principles consistently applied and in the form and manner prescribed in the Manual or otherwise in writing. Franchisee’s obligation to preserve such books, records and accounts shall survive the Franchised Businesstermination hereof.
B. Franchisee will supply shall, at Franchisee’s expense, submit to Franchisor on or before by the fifteenth (15th) day of each Accounting Period after the term Effective Date, including the first partial Accounting Period if the Effective Date is on other than the first day of each calendar quarteran Accounting Period, a statement covering the immediately preceding Accounting Period in the form approved prescribed by Franchisor, a accurately reflecting all gross room revenues, the source and amounts of all other revenues generated at the Hotel, room occupancy and rates, reservations data, and such other data or information as Franchisor may require. Additionally, Franchisor’s property management system may poll the Hotel’s room revenue results daily.
C. Upon the request of Franchisor, Franchisee shall, at Franchisee’s expense, submit to Franchisor an unaudited quarterly and/or annual profit and loss statement for the Hotel (in the form prescribed by Franchisor) and a balance sheet for within thirty (30) days of the last preceding calendar quarterend of each fiscal quarter and/or fiscal year during the term hereof. Additionally, Each statement shall be signed by Franchisee attesting that it is true and correct.
D. Franchisee shall, at its expense, submit to Franchisor, for review and audit, such other forms, periodic and other reports, records, information and data relating to Franchisee, the Hotel and the Hotel’s marketing, sales and guests as Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountantmay reasonably designate, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statements.
C. Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner form and at the time times and places reasonably required by Franchisor, upon request and as specified in the Confidential Operations Manual or otherwise in writing. Franchisor shall have the right to access the Hotel’s PMS and reservations system directly to obtain marketing, sales and guest information, and Franchisee shall take all actions necessary to provide such access.
D. E. Franchisor or its designated agents agent shall have the rightright at all reasonable times, during normal business hours and with or without prior noticeupon reasonable notice to Franchisee, to examine and copy, at its expense, the all books, records, accounts and tax returns of FranchiseeFranchisee related to the operation of the Hotel during the preceding five (5) years. Franchisor also shall also have the right right, at any time, and upon reasonable notice to Franchisee, to have an independent audit made of these books, accounts and records of Franchisee related to the books operation of Franchiseethe Hotel. Franchisee shall provide lodging, if available, without charge to Franchisor’s agents during the time as may reasonably be necessary to complete such audits and to render such other assistance as may reasonably be requested. If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor upon demand, the amount understated upon demand, in addition to plus interest from the date such amount was due until paid, at . The rate of interest shall be one and one-half percent (1 1/2%) per Accounting Period or the maximum rate permitted by law, whichever is less, from the date such amount was due. If an inspection discloses an understatement in any report of two three percent (23%) or more, more for the period being inspected. Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' ’ fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have. If an inspection should reveal that Franchisee has made overpayments to Franchisor, the amount of any such overpayment, without interest, shall be credited against future payments due and payable to Franchisor by Franchisee hereunder.
E. F. Upon the request of Franchisor: (i) Franchisee, if a natural person or persons, shall submit to Franchisor a list of all owners of this franchise and the interest held by each; (ii) Franchisee, if a partnership, shall submit to Franchisor a list of all partners and the interest in Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement held by each; (iii) Franchisee, if a corporation, shall submit to accept any payments after same Franchisor a list of all shareholders and the interest in Franchisee held by each; provided, however if Franchisee’s shares are due publicly held, the list of shareholders required shall include only those who own five percent (5%) or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation more of the Franchised Business. Furthershares outstanding; or (iv) Franchisee, if a limited liability company, shall submit to Franchisor a list of all members of the limited liability company and the interest in Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein providedheld by each.
Appears in 1 contract
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following During the term of this Agreement, all accounting Franchisee shall maintain and preserve, for at least six (6) years from the dates of their preparation, full, complete and accurate books, records and supporting documentation relating to accounts, in connection with the Franchised Business.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarter, in the form approved by Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Franchisee shall, at its expense, submit to Franchisor within ninety (90) days of the end of each fiscal year during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied or international financial reporting standards applicable in the Area of Responsibility and in the form and manner prescribed by Franchisor from time to time in writing.
B. Franchisee shall submit to Franchisor, on a consistent basismonthly or other periodic basis prescribed by Franchisor, a statement or statements in the form prescribed by Franchisor, showing such descriptive information as Franchisor may require of each item of equipment and other personal property in the Product Line owned, used, under repair or kept by Franchisee for use in the Franchised Business in the preceding month and the Gross Revenue generated by the Franchised Business, during such period. Such statements shall be signed by Franchisee. At the request of Franchisor reserves and at Franchisee’s sole cost and expense, Franchisee agrees to swear to the right to require Franchisee to submit audited financial statementstruth of such statements by means of an affidavit executed before a Consul of the United States of America, or before a Notary Public and/or by providing Franchisor with a statement of a Certified Public or Chartered Accountant as deemed appropriate by Franchisor.
C. Franchisee shall submit the following statements to Franchisor:
(1) As soon as available, but in any event within ninety (90) days after the end of each calendar year of the Franchised Business, a statement certified by a Certified Public or Chartered Accountant in a generally recognized international accounting firm, showing: (i) the total Product Line and the total amount of Gross Revenue generated by the Franchised Business during such calendar year or portion thereof; and (ii) a computation of the amount that Franchisee was required to spend under Paragraph X.C. below for advertising and promotion and the amount actually expended by Franchisee; and
(2) At Franchisor’s request, audited financial statements certified by a Certified Public or Chartered Accountant in a generally recognized international accounting firm for the Franchised Business within ninety (90) days after the end of each calendar year. Upon submission of such statements, Franchisee shall remit therewith all sums not theretofore paid which shall be due to Franchisor in accordance with the provisions of this Agreement (including the payment of the minimum annual license fee required under Paragraph IV.A.(2) hereof). If any amounts are then overdue, such overdue sums shall be subject to late fees pursuant to Paragraph IV.C. hereof.
D. Franchisee shall also submit to Franchisor, for review or auditing, to determine Franchisee’s compliance with this Agreement, such other periodic forms, reports, forms records, information and records data as specifiedFranchisor may reasonably designate, and in the manner and at the time times and places reasonably required by Franchisor, upon request and as specified in the Confidential Operations Manual or otherwise from time to time by Franchisor in writing.
D. Franchisor or its E. Franchisor, Hertz and their designated agents shall have the right, during normal business hours and right at all reasonable times on reasonable prior written notice in order to determine Franchisee’s compliance with or without prior noticethis Agreement, to examine examine, audit, and copy, copy at its expense, on the bookspremises of the Franchised Business, records, the books and tax returns records of FranchiseeFranchisee and/or the Franchised Business. Franchisor shall also have the right right, at any time, to have an independent audit made of such books and records. If these examinations or audits are conducted due to Franchisee’s failure to comply with this Agreement or any other agreement with Franchisor or its Affiliates, or if Franchisee denies Franchisor access to the books and records of Franchisee. If an inspection should reveal Franchisee and/or the Franchised Business or otherwise takes action that any payments results in the examination or audit not proceeding satisfactorily, Franchisor shall have the right to Franchisor have been understated in any report to Franchisor, then charge Franchisee shall immediately pay to Franchisor for the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the maximum rate permitted by law. If an inspection discloses an understatement in any report of two percent (2%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected incurred in connection with the inspection (examinations and audits, including, without limitation, charges for Franchisor’s employees’ or agents’ travel expenses, room, board and compensation, and costs of enforcement of these provisions, and reasonable accounting and attorneys' legal fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including including, without limitation limitation, the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) 3 years, during the term of this Agreement and for not less than three (3) 3 years following the term of this Agreement, all accounting records and supporting documentation relating to the Franchised Retail Business.
B. Franchisee will supply to Franchisor on or before the fifteenth (15th) 20th day after the term of each calendar quarter, in the form approved by Franchisor, a profit and loss statement and balance sheet for the last preceding calendar quarter. Additionally, Franchisee shall, at its expense, submit to Franchisor within ninety (90) 90 days of the end of each fiscal year during the term of this Agreement, a profit and loss an income statement for such fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit financial statements which are either audited financial statementsor reviewed by a Certified Public Accountant.
C. Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or otherwise in writing.
D. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copy, at its expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the lower of 18% per annum or the maximum rate permitted by law. If an inspection discloses an understatement in any report of two percent (2%) % or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Retail Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. 12.1 Franchisee shall establish prepare, and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than at least three (3) years following from the term dates of this Agreementtheir preparation, all complete and accurate books, records, and accounts, in accordance with generally accepted accounting records and supporting documentation relating to the Franchised Businessprinciples.
B. 12.2 All Gross Sales and all sales tax and other charges collected on behalf of third parties shall be recorded by Franchisee will supply in accordance with the procedures prescribed in the Manuals on such point of sale systems as Franchisor may specify pursuant to Franchisor on or before the fifteenth (15th) day after the term of each calendar quarterSection 8.7 above.
12.3 Franchisee shall submit to Franchisor, at Franchisee's expense, in the form approved prescribed by Franchisor:
12.3.1 By no later than Monday of each week, a profit complete and loss statement and balance sheet accurate report of Gross Sales for the last preceding calendar quarter. Additionallyweek, Franchisee shall, at its expense, submit to and such other weekly data as Franchisor within may reasonably require;
12.3.2 Within ninety (90) days of after the end of each fiscal year of Franchisee, an income statement showing the results of Franchisee's operations during the term of this Agreement, a profit and loss statement for such fiscal year and a balance sheet for as of the last date end of such fiscal year. Such annual statements , both of which shall be prepared and reviewed audited by an independent certified public accountant; and
12.3.3 Interim unaudited income statements and balance sheets, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves not less often than quarterly, within forty-five (45) days after the right end of the period to require Franchisee to submit audited financial statementswhich the statements relate.
C. Franchisee shall submit to 12.4 Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or otherwise in writing.
D. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right to examine and copy, at its Franchisor's expense, on reasonable notice and during normal business hours, the books, records, accounts, and sales tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal or audit reveals that any payments payment to Franchisor have has been understated in any report to Franchisorunderstated, then Franchisee shall immediately pay to Franchisor the amount understated upon demandowed, in addition to together with daily interest from the date such amount was due until paid, paid at the rate of eighteen percent (18%) per annum or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in or audit reveals any report underpayment by Franchisee of two percent (2%) or more, Franchisee shall, in additionaddition to payment of monies owed with interest, reimburse Franchisor for any and all costs and expenses connected with the inspection or audit (including, without limitation, expenses for travel, lodging and wages, and reasonable accounting and attorneys' feeslegal costs). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. Franchisee acknowledges that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein provided.
Appears in 1 contract
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following During the term of this Agreement, Franchisee shall maintain and preserve, for at least seven (7) years from the date of their preparation, full, complete and accurate books, records, and accounts in accordance with generally accepted accounting principles and in the form and manner prescribed by Franchisor from time-to-time in the Manuals or otherwise in writing. Franchisee shall record all accounting sales at or from the restaurant using cash registers or other point-of-sale equipment and computer software meeting Franchisor's standards and specifications and approved by Franchisor. Franchisee shall maintain and preserve all cash register tapes and/or computer records and supporting documentation relating to the Franchised Businessfor at least two (2) years.
B. Franchisee will supply shall submit to Franchisor on or before Franchisor, no later than the fifteenth tenth (15thl0th) day after of each month during the term of each calendar quarterthis Agreement, after the opening of the restaurant, an unaudited profit and loss statement, in the form approved prescribed by Franchisor, a accurately reflecting all gross sales during the preceding month and such other data or information as Franchisor may require. Each profit and loss statement shall be signed by Franchisee attesting that it is true and correct to the best of Franchisee's knowledge.
C. Franchisee shall, at Franchisee's expense, submit to Franchisor an audited profit and loss statement and audited balance sheet for the last preceding calendar quarter. Additionallyprepared in accordance with generally accepted accounting principles, Franchisee shall, at its expense, submit to Franchisor within ninety one hundred twenty (90120) days of after the end of each fiscal year during the term hereof, showing the results of this Agreement, a profit and loss statement for such operations of the franchised business during said fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statements.
C. D. Franchisee shall submit to Franchisor Franchisor, within thirty (30) days of the filing of Franchisee's annual federal income tax return, a copy of Franchisee's federal income tax return and copies of monthly sales tax returns pertaining to the franchised business for the preceding fiscal year.
E. Franchisee shall submit to Franchisor, for review or auditing, such other periodic forms, reports, forms books, tax returns, records, bank statements, federal and records as specifiedstate unemployment compensation reports and worker's compensation reports, withholding tax reports, purchasing records, cash register tapes, computer records, and such other information and data as Franchisor may reasonably designate, in the manner form and at the time times and places reasonably required by Franchisor, upon request and as specified from time to time in the Confidential Operations Manual Manuals or otherwise in writing.
D. F. Franchisee shall, and does hereby, consent to the release of records, accounts, and such other information held by banks, credit reporting agencies, and suppliers of Franchisee as may be reasonably requested by Franchisor. Franchisee shall execute such documents as Franchisor deems necessary to obtain such information.
G. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copyexamine, at its expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any such payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall pay Franchisor, immediately pay to Franchisor the amount understated upon demand, demand and in addition to the amount understated, a late fee of $75.00 and interest on the understated amount, from the date such the understated amount was due until paid, at one and one-half percent (l l/2%) per month or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in any report of two three percent (23%) or moremore of the amount due to Franchisor, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, travel, lodging, wage expenses and reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. H. Franchisee acknowledges that nothing contained herein constitutes shall, at its expense, submit to Franchisor's agreement to accept any payments after same are due or , in conjunction with, and as a commitment part of, the financial statements required under Section X.C. hereof, a complete and accurate accounting and a detailed description of all expenditures by Franchisor to extend credit to or otherwise finance Franchisee's operation of Franchisee for local advertising during the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein providedpreceding fiscal year.
Appears in 1 contract
Samples: Area Development Agreement (Frischs Restaurants Inc)
Accounting and Records. A. Franchisee shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by Franchisor, including without limitation the use and retention of sales tickets, purchase orders, invoices, payroll records, check stubs, sales tax records and returns, cash receipts and disbursements, journals and general ledgers. Franchisee shall preserve for a period of not less than three (3) years, during the term of this Agreement and for not less than three (3) years following During the term of this Agreement, Franchisee shall maintain and preserve, for at least seven (7) years from the date of their preparation, full, complete and accurate books, records, and accounts in accordance with generally accepted accounting principles and in the form and manner prescribed by Franchisor from time-to-time in the Manuals or otherwise in writing. Franchisee shall record all accounting sales at or from the restaurant using cash registers or other point-of-sale equipment and computer software meeting Franchisor's standards and specifications and approved by Franchisor. Franchisee shall maintain and preserve all cash register tapes and/or computer records and supporting documentation relating to the Franchised Businessfor at least two (2) years.
B. Franchisee will supply shall submit to Franchisor on or before Franchisor, no later than the fifteenth tenth (15thl0th) day after of each month during the term of each calendar quarterthis Agreement, after the opening of the restaurant, an unaudited profit and loss statement, in the form approved prescribed by Franchisor, a accurately reflecting all gross sales during the preceding month and such other data or information as Franchisor may require. Each profit and loss statement shall be signed by Franchisee attesting that it is true and correct to the best of Franchisee's knowledge.
C. Franchisee shall, at Franchisee's expense, submit to Franchisor an audited profit and loss statement and audited balance sheet for the last preceding calendar quarter. Additionallyprepared in accordance with generally accepted accounting principles, Franchisee shall, at its expense, submit to Franchisor within ninety one hundred twenty (90120) days of after the end of each fiscal year during the term hereof, showing the results of this Agreement, a profit and loss statement for such operations of the franchised business during said fiscal year and a balance sheet for the last date of such year. Such annual statements shall be prepared and reviewed by an independent certified public accountant, in accordance with generally accepted accounting principles applied on a consistent basis. Franchisor reserves the right to require Franchisee to submit audited financial statements.
C. D. Franchisee shall submit to Franchisor Franchisor, within thirty (30) days of the filing of Franchisee's annual federal income tax return, a copy of Franchisee's federal income tax return and copies of monthly sales tax returns pertaining to the franchised business for the preceding fiscal year.
E. Franchisee shall submit to Franchisor, for review or auditing, such other periodic forms, reports, forms books, tax returns, records, bank statements, federal and records as specifiedstate unemployment compensation reports and workmen's compensation reports, withholding tax reports, purchasing records, cash register tapes, computer records, and such other information and data as Franchisor may reasonably designate, in the manner form and at the time times and places reasonably required by Franchisor, upon request and as specified from time to time in the Confidential Operations Manual Manuals or otherwise in writing.
D. F. Franchisee shall, and does hereby, consent to the release of records, accounts, and such other information held by banks, credit reporting agencies, and suppliers of Franchisee as may be reasonably requested by Franchisor. Franchisee shall execute such documents as Franchisor deems necessary to obtain such information.
G. Franchisor or its designated agents shall have the right, during normal business hours and with or without prior notice, right at all reasonable times to examine and copyexamine, at its expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any such payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall pay Franchisor, immediately pay to Franchisor the amount understated upon demand, demand and in addition to the amount understated, a late fee of $75.00 and interest on the understated amount, from the date such the understated amount was due until paid, at one and one-half percent (l l/2%) per month or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in any report of two three percent (23%) or moremore of the amount due to Franchisor, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, travel, lodging, wage expenses and reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
E. H. Franchisee acknowledges that nothing contained herein constitutes shall, at its expense, submit to Franchisor's agreement to accept any payments after same are due or , in conjunction with, and as a commitment part of, the financial statements required under Section X.C. hereof, a complete and accurate accounting and a detailed description of all expenditures by Franchisor to extend credit to or otherwise finance Franchisee's operation of Franchisee for local advertising during the Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as herein providedpreceding fiscal year.
Appears in 1 contract
Samples: Area Development Agreement (Frischs Restaurants Inc)
