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Posted on 2/2/2011 - Franchising Documentary Damages Cold Stone Creamery Franchises...
Posted on 1/17/2011 - Noble Roman’s Inc. Wins One Lawsuit, Starts Another...
Posted on 1/13/2011 - Successful Franchises Listen to Customer Demand...
Posted on 1/12/2011 - Kid’s Clothing Store Sues for Trade Secret Theft...
Posted on 12/9/2010
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Franchisor Services
What kind of financial statements do I need for my FDD?
A: As a franchisor, a Franchise Disclosure Document (FDD) requires you to include the following financial statements:
• Your latest annual balance sheet, as of the end of the 2 most recent fiscal years;
• A statement of operations for the 3 most recent fiscal years;
• A statement of stockholders' equity for the 3 most recent fiscal years; and
• A statement of cash flows for the 3 most recent fiscal years.
Before submitting this information, these financial statements must be audited by an independent certified public accountant. If you have questions about what must be included, you can get the professional advice of a New York business lawyer.
What if my franchise business is a start-up?
If you are in your first year selling business franchises, then obviously you cannot provide what the FDD requires. Therefore, if you are in your first partial or full fiscal year selling franchises, in the FDD you must include an un-audited opening balance sheet.
What else must I provide in the FDD?
In the FDD, you must also provide information about any past lawsuits or bankruptcies. This is in order to fully disclose your company history to a potential franchisee. If you are unsure about what information to include in the FDD, you should contact a New York business lawyer. With the help of a New York business lawyer, you can be sure to provide all of the information that an FDD requires.
Offering expert help in New York, New Jersey and nationwide, New York business lawyer Charles N. Internicola is ready to answer your questions about franchise, national and international trademarks, and any critical business matters that may arise. Contact us today - 1-800-976-4904
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