Submit Financials

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What financial statements are required in the UFOC?

Submit Financials

Whether you decide to share unit financial statements or not, you are required to submit financial statements for your franchise offering company. This is most likely a separate holding company, not the company under which you operate the business you are franchising.

Item 21 of the Uniform Franchise Offering Circular (UFOC) is a listing of your financial statements. You will indicate whether they are audited and who prepared them. If they are un-audited and internally prepared, you will indicate that. The minimum required statement is an un-audited Summary Balance Sheet.

If audits are necessary (based on requirements of the state in which you are selling the franchise) the minimum required statements are a Balance Sheet, Statement of Changes in Stockholders' Equity, Statement of Income and Statement of Cash Flows. Misrepresenting financial statements could result in the Franchise Agreement being voided.

   

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