37-5B-9. Phase-in of financial statements.
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/sd/title-37/chapter-37-5/37-5b-9A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For the purposes of § 37-5B-7 , a start-up franchisor may phase-in the disclosure of audited financial statements, if the franchisor:
(1)Prepares audited financial statements as soon as practicable;
(2)Prepares unaudited statements in a format that conforms as closely as possible to audited statements; and
(3)Includes one or more years of unaudited financial statements or clearly and conspicuously discloses in the disclosure document that the franchisor has not been in business for three years or more, and cannot include all of the financial statements required in the disclosure document such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years.