Common use of Accounting, Reports and Financial Statements Clause in Contracts

Accounting, Reports and Financial Statements. You agree to maintain, at your own expense, the Joint Software and other accounting software, to act as a bookkeeping, accounting, and record keeping system for the Franchise. The Joint® Software includes the capability of being polled by our central computer system, which you agree to permit. With respect to the operation and financial condition of the Franchise, we will pull from the Joint Software (if available), or require you to provide from your accounting software (in a form we designate) or in accordance with General Acceptably Accounting Principles (“GAAP”), as the case may be, the following: (1) by Tuesday of each week, an electronic report of the Franchise’s gross revenues for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may require; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3) within ninety (90) days after the end of your fiscal year, a fiscal year-end balance sheet, and an annual profit and loss statement for that fiscal year, reflecting all year-end adjustments; and (4) such other reports as we require from time to time (collectively, all of the above are referred to as “Reports”). You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure that all Reports are accurate. You agree to maintain and furnish upon our request complete copies of federal and state income tax returns you file with the Internal Revenue Service and state tax departments, reflecting revenues and income of the Franchise or the corporation, partnership, or limited liability company that holds the Franchise. You agree to retain hard copies of all records for a minimum of four (4) years.

Accounting, Reports and Financial Statements. You agree to maintain, at your own expense, the Joint Software and other accounting software, to act as a bookkeeping, accounting, and record keeping system for the Franchise. The Joint® Joint Software includes the capability of being polled by our central computer system, which you agree to permit. With respect to the operation and financial condition of the Franchise, we will pull from the Joint Software (if available), or require you to provide from your accounting software (in a form we designate) , or in accordance with General Acceptably Accounting Principles (“GAAP”), as the case may be, the following: (1) by Tuesday of each week, an electronic report of the Franchise’s gross revenues for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may require; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3) within ninety (90) days after the end of your fiscal year, a fiscal year-end balance sheet, and an annual profit and loss statement for that fiscal year, reflecting all year-end adjustments; and (4) such other reports as we require from time to time (collectively, all of the above are referred to as “Reports”). You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure that all Reports are accurate. If it is determined that any information was omitted from the Joint Software or your accounting software was input inaccurately, or you have failed to provide us any required Reports, we may charge a non-refundable accounting fee of One Hundred and No/100 Dollars ($100.00), payable in a lump sum by the fifth (5th) day of the month following the month during which the inaccurate report was submitted or for any late Reports. You agree to maintain and furnish upon our request complete copies of federal and state income tax returns you file with the Internal Revenue Service and state tax departments, reflecting revenues and income of the Franchise or the corporation, partnership, or limited liability company that holds the Franchise. We reserve the right to require you to have audited or reviewed financial statements prepared by a certified public accountant on an annual basis. You agree to retain hard copies of all records for a minimum of four (4) years.. The Joint…The Chiropractic Place™ Franchise Agreement

Accounting, Reports and Financial Statements. You agree to maintain10.1 Franchisee will, at your own its expense, the Joint Software and other accounting software, to act as a bookkeeping, accounting, and record keeping system for the Franchise. The Joint® Software includes the capability of being polled by our central computer system, which you agree to permit. With respect retain all records relating to the development and operation and financial condition of the FranchiseSTORE. Franchisee will furnish to Company via the medium Company prescribes from time to time, we will pull from the Joint Software (if available), or require you to provide from your accounting software (in a form we designate) or in accordance consistent with General Acceptably Accounting Principles (“GAAP”), as the case may be, the followingits then-current accounting practices and procedures: (1a) weekly reports of the STORE’s sales, cost of goods sold, labor expense and number of transactions by 12:00 noon (Eastern Standard Time) on Tuesday of each week, an electronic report of the Franchise’s gross revenues week for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may requireweek; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3b) within ninety thirty (9030) days after the end of your each month, an operating income statement of Franchisee for such month and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; (c) within forty-five (45) days after the end of each fiscal quarter, a balance sheet and income statement of Franchisee for such quarter and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; (d) within one hundred twenty days (120) days after the end of Franchisee’s fiscal year, a fiscal year-end balance sheet, and an annual profit and loss income statement for that the STORE for such fiscal year, year (reflecting all year-end adjustments), and a statement of cash flow of the STORE, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; and (4e) upon request by Company, such other reports data, reports, information and supporting records as we require Company may from time to time (collectively, all of the above are referred to as “Reports”). You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure that all Reports are accurate. You agree prescribe. 10.2 Franchisee agrees to maintain and to furnish to Company, upon our request request, complete copies of federal all withholding, income, sales, value added, use and state income service tax returns you file filed by Franchisee reflecting activities of the STORE. Company has the right to (a) disclose data derived from such reports without identifying Franchisee or the location of the STORE; (b) require Franchisee to have audited financial statements prepared on an annual basis; and (c) to access all cash registers/computer terminals and Franchisee’s computer system and retrieve all information relating to the STORE, as often as it deems appropriate. Franchisee will take such action as may be necessary to provide such access to Company. Furthermore, Franchisee will immediately report to Company any events or developments which may have a significant or material adverse impact on the operation of the STORE, Franchisee’s performance under this Agreement, or the goodwill associated with the Internal Revenue Service Marks and state Krispy Kreme Stores. Franchisee will sign and verify as correct each report and financial statement submitted by Franchisee in the manner prescribed by Company. 10.3 Company will comply with all applicable consumer privacy and data protection laws and regulations and with any consumer privacy and data protection policies of Company in effect from time to time, including without limitation all laws, regulations and policies relating to any transfer of personal information by Franchisee to Company. Franchisee acknowledges and agrees that it is solely responsible for determining whether its data processing policies relating to international transfers of personal information are in compliance with all applicable laws and regulations. Franchisee will immediately notify Company if Franchisee discovers that its or Company’s consumer privacy and data protection policies applicable to Franchisee are not in conformity with applicable laws and regulations, including without limitation all laws and regulations relating to any transfer of personal information by Franchisee to Company. 10.4 Company has the right to audit at any time during regular business hours, and without prior notice to Franchisee, to inspect and audit, or cause to be inspected and audited, the business, financial and tax departments, reflecting revenues and income records of the Franchise STORE and Franchisee. Franchisee will fully cooperate and cause its employees and agents to fully cooperate with representatives of Company and independent accountants hired by Company to conduct any such inspection or audit. Company’s right to audit includes, without limitation, the corporationright to access Franchisee’s computer system. In the event any such inspection or audit reveals an understatement of the Gross Sales of the STORE, partnershipFranchisee will pay to Company, within fifteen (15) days after receipt of the inspection or limited liability company that holds audit report, the FranchiseRoyalty payments due on the amount of such understatement, plus interest (at the rate and on the terms provided in this Agreement) from the date originally due until the date of payment. You agree Further, in the event such inspection or audit is made necessary by the failure of Franchisee to retain hard copies timely furnish any reports or supporting records required to be submitted under this Agreement or if an understatement of Gross Sales for the period of any audit is determined by any such audit or inspection to be greater than two percent (2%), Franchisee will reimburse Company for the cost of such inspection or audit, including, without limitation, legal fees, accountants’ fees and the travel expenses, room and board and per diem charges for employees of Company. The foregoing remedies are in addition to all records for a minimum other remedies and rights of four (4) yearsCompany hereunder or under applicable law.

Accounting, Reports and Financial Statements. You agree to maintain10.1 Franchisee will, at your own its expense, the Joint Software and other accounting software, to act as a bookkeeping, accounting, and record keeping system for the Franchise. The Joint® Software includes the capability of being polled by our central computer system, which you agree to permit. With respect retain all records relating to the development and operation and financial condition of the FranchiseSTORE. Franchisee will furnish to Company via the medium Company prescribes from time to time, we will pull from the Joint Software (if available), or require you to provide from your accounting software (in a form we designate) or in accordance consistent with General Acceptably Accounting Principles (“GAAP”), as the case may be, the followingits then-current accounting practices and procedures: (1a) weekly reports of the STORE’s sales, cost of goods sold, labor expense and number of transactions by 12:00 noon (Eastern Standard Time) on Tuesday of each week, an electronic report of the Franchise’s gross revenues week for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may requireweek; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3b) within ninety thirty (9030) days after the end of your each month, an operating income statement of Franchisee for such month and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; (c) within forty-five (45) days after the end of each fiscal quarter, a balance sheet and income statement of Franchisee for such quarter and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; (d) within one hundred twenty days (120) days after the end of Franchisee’s fiscal year, a fiscal year-end balance sheet, and an annual profit and loss income statement for that the STORE for such fiscal year, year (reflecting all year-end adjustments), and a statement of cash flow of the STORE, prepared in accordance with generally accepted accounting principles consistently applied in the geographic area within which the STORE is located; and (4e) upon request by Company, such other reports data, reports, information and supporting records as we require Company may from time to time (collectively, all of the above are referred to as “Reports”). You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure that all Reports are accurate. You agree prescribe. 10.2 Franchisee agrees to maintain and to furnish to Company, upon our request request, complete copies of federal all withholding, income, sales, value added, use and state income service tax returns you file filed by Franchisee reflecting activities of the STORE. Company has the right to (a) disclose data derived from such reports without identifying Franchisee or the location of the STORE; (b) require Franchisee to have audited financial statements prepared on an annual basis; and (c) to access all cash registers/computer terminals and Franchisee’s computer system and retrieve all information relating to the STORE, as often as it deems appropriate. 11 Franchisee will take such action as may be necessary to provide such access to Company. Furthermore, Franchisee will immediately report to Company any events or developments which may have a significant or material adverse impact on the operation of the STORE, Franchisee’s performance under this Agreement, or the goodwill associated with the Internal Revenue Service Marks and state Krispy Kreme Stores. Franchisee will sign and verify as correct each report and financial statement submitted by Franchisee in the manner prescribed by Company. 10.3 Company will comply with all applicable consumer privacy and data protection laws and regulations and with any consumer privacy and data protection policies of Company in effect from time to time, including without limitation all laws, regulations and policies relating to any transfer of personal information by Franchisee to Company. Franchisee acknowledges and agrees that it is solely responsible for determining whether its data processing policies relating to international transfers of personal information are in compliance with all applicable laws and regulations. Franchisee will immediately notify Company if Franchisee discovers that its or Company’s consumer privacy and data protection policies applicable to Franchisee are not in conformity with applicable laws and regulations, including without limitation all laws and regulations relating to any transfer of personal information by Franchisee to Company. 10.4 Company has the right to audit at any time during regular business hours, and without prior notice to Franchisee, to inspect and audit, or cause to be inspected and audited, the business, financial and tax departments, reflecting revenues and income records of the Franchise STORE and Franchisee. Franchisee will fully cooperate and cause its employees and agents to fully cooperate with representatives of Company and independent accountants hired by Company to conduct any such inspection or audit. Company’s right to audit includes, without limitation, the corporationright to access Franchisee’s computer system. In the event any such inspection or audit reveals an understatement of the Gross Sales of the STORE, partnershipFranchisee will pay to Company, within fifteen (15) days after receipt of the inspection or limited liability company that holds audit report, the FranchiseRoyalty payments due on the amount of such understatement, plus interest (at the rate and on the terms provided in this Agreement) from the date originally due until the date of payment. You agree Further, in the event such inspection or audit is made necessary by the failure of Franchisee to retain hard copies timely furnish any reports or supporting records required to be submitted under this Agreement or if an understatement of Gross Sales for the period of any audit is determined by any such audit or inspection to be greater than two percent (2%), Franchisee will reimburse Company for the cost of such inspection or audit, including, without limitation, legal fees, accountants’ fees and the travel expenses, room and board and per diem charges for employees of Company. The foregoing remedies are in addition to all records for a minimum other remedies and rights of four (4) yearsCompany hereunder or under applicable law.

Accounting, Reports and Financial Statements. You agree to maintain23.1 Franchisee will, at your own Franchisee’s expense, the Joint Software and other accounting software, to act as a bookkeeping, accounting, and record keeping system for the Franchise. The Joint® Software includes the capability of being polled by our central computer system, which you agree to permit. With respect retain all records relating to the development and operation and financial condition of the FranchiseSTORE. All such records shall be kept at the premises of the STORE, we unless Franchisor otherwise approves. Franchisee will pull furnish to Franchisor via the medium Franchisor prescribes from the Joint Software (if available)time to time, or require you to provide from your accounting software (in a form we designate) or in accordance consistent with General Acceptably Accounting Principles (“GAAP”), as the case may be, the followingits then-current accounting practices and procedures: (1a) by Tuesday of each weekReporting Day, an electronic report reports of the FranchiseSTORE’s gross revenues sales, cost of goods sold, labor expense and number of transactions for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may requireWeek; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3b) within ninety thirty (9030) days after the end of your each month, an operating income statement of Franchisee, the STORE, or both for such month and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied; (c) within forty-five (45) days after the end of each fiscal quarter, a balance sheet and income statement of Franchisee, the STORE, or both for such quarter and fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied; (d) within one hundred twenty days (120) days after the end of Franchisee’s fiscal year, a fiscal year-end balance sheet, sheet and an annual profit and loss income statement for that the STORE and/or Franchisee for such fiscal year, year (reflecting all year-end adjustments), and a statement of cash flow of the STORE, prepared in accordance with generally accepted accounting principles consistently applied; and (4e) upon request by Franchisor, such other reports data, reports, information and supporting records as we require Franchisor may from time to time (collectively, all of the above are referred to as “Reports”). You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure that all Reports are accurate. You agree prescribe. 23.2 Franchisee agrees to maintain and to furnish to Franchisor, upon our request request, complete copies of federal all withholding, income, sales, value added, use and state income service tax returns you file filed by Franchisee reflecting activities of the STORE. 23.3 Franchisor has the right to (a) disclose data derived from all reports; (b) require Franchisee to have audited financial statements prepared on an annual basis; and (c) to access all cash registers/computer terminals and Franchisee’s Computer System and retrieve all information relating to the STORE, as often as it deems appropriate. Franchisee will take such action as may be necessary to provide such access to Franchisor. Furthermore, Franchisee will immediately report to Franchisor any events or developments which may have a significant or material adverse impact on the operation of the STORE, Franchisee’s performance under this Agreement, or the goodwill associated with the Internal Revenue Service Marks and state Krispy Kreme Stores. Franchisee will sign and verify as correct and complete each report and financial statement submitted by Franchisee in the manner prescribed by Franchisor. 23.4 Each year, Franchisor requires that Franchisee submit an annual business plan for Franchisor’s review. Further, Franchisor has the right to audit at any time during regular business hours, and without prior notice to Franchisee, to inspect and audit, or cause to be inspected and audited, the business, financial and tax departments, reflecting revenues and income records of the Franchise STORE and Franchisee. Franchisee will fully cooperate and cause its employees and agents to fully cooperate with Franchisor’s representatives and independent accountants hired by Franchisor to conduct any such inspection or audit. Franchisor’s right to audit includes the corporationright to access the Computer System. In the event any such inspection or audit reveals an understatement of the Net Sales of the STORE, partnershipFranchisee will pay to Franchisor, within fifteen (15) days after receipt of the inspection or limited liability company that holds audit report, the FranchiseRoyalty payments and Brand Fund contributions (and any required advertising cooperative contributions) due on the amount of such understatement, plus interest (at the rate and on the terms provided in this Agreement) from the date originally due until the date of payment. You agree Further, in the event such inspection or audit is made necessary by Franchisee’s failure to retain hard copies furnish timely any reports or supporting records required to be submitted under this Agreement or if an understatement of Net Sales for the period of any audit is determined by any such audit or inspection to be greater than two percent (2%), Franchisee will reimburse Franchisor for the cost of such inspection or audit, including legal fees, accountants’ fees and the travel expenses, room and board, per diem charges, and other associated expenses for Franchisor’s employees. The foregoing remedies are in addition to all records for a minimum of four (4) yearsother remedies and rights contained in this Agreement or under applicable law.