Franchisor Financial Statement Audits

Franchisor Financial Statement Audits

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If you sell franchises in New York, the state requires audited financial statements in your Franchise Disclosure Document (FDD), with no exceptions for new or small franchisors.

Unlike most other franchise registration states, New York does not allow a phase-in period. Even a first-year, newly formed franchisor must have an audited opening balance sheet, and by the third year, a full three-year set of audited financial statements. This applies whether you are based in New York or simply selling franchises to New York residents.

At Nacca & Capizzi, our accounting and assurance team works with franchisors throughout Western New York to meet these requirements accurately and on schedule, so your registration or renewal filing is not held up by financial statement issues.

Our Franchisor Audit Services Include:

  • Audited opening balance sheets for new and start-up franchisors filing their initial FDD
  • Full audited financial statements (balance sheet, income statement, statement of stockholders' equity, and cash flows) for established franchisors
  • Annual audits timed to your FDD renewal deadline (due within 120 days of your fiscal year-end)
  • Auditor's opinion letters and CPA consent letters required for NASAA FRED filings
  • Coordination with your franchise attorney on registration, renewal, and material amendment timing
  • Support for out-of-state franchisors registering to sell into New York
  • Multi-state financial statement coordination for franchisors registering in New York alongside other registration states (California, Illinois, Michigan, Minnesota, Virginia, Washington, and others)

Because New York's requirements are stricter than most states', it is easy for new franchisors to be caught off guard, assuming they will get the same phase-in relief available elsewhere. Our team helps you plan ahead so your first FDD filing goes smoothly, and every renewal after it.

Serving franchisors in Rochester, Buffalo, and across Western New York.

Ready to talk through your FDD audit requirements? Contact us to get started.