Does Auntie Annes have the right to videotape the operation of the franchised business?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
14.1 Inspections and Audits. We or any of our authorized agents may at any time during normal business hours (including pre-opening and post-closing) enter the Franchised Business or any other place where business related to the Franchised Business is conducted and: (i) conduct an operational audit to determine your material compliance, as we determine, with this Agreement; (ii) examine, analyze, and inspect the Franchised Business, the Proprietary Goods, the Approved Products, and any products produced and/or sold or distributed at, from, or through the Franchised Business (whether authorized or unauthorized); (iii) take reasonable samples of any the Proprietary Goods, the Approved Products, and any products produced and/or sold or distributed at, from, or through the Franchised Business (whether authorized or unauthorized), without charge or liability; (iv) videotape, photograph, or otherwise record the operation of the Franchised Business; (v) interview your employees, customers, landlords, and suppliers; and (vi) audit, review and examine by any means, including electronically through the use of telecommunications devices or otherwise, at our expense, your books, records, accounts, and tax returns related to the Franchised Business. We may require you to send us copies of your books, records, and files related to the Franchised Business, which you must provide to us or our representatives within a reasonable time (not to exceed 10 days) of our request. We also may require you to participate in customer satisfaction surveys or other audit programs, including electronically through the use of telecommunications devices or otherwise, to assess your compliance with our customer service standards. You will provide us with full cooperation in the course of any inspection or audit we conduct under this Section. Any inspections will be made at our expense, unless the inspection is necessitated by your repeated or continuing failure to comply with any provision of this Agreement, in which case we may charge you non-compliance
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes retains the right to videotape the operation of a franchised business. Specifically, Auntie Annes or its authorized agents can enter the franchised business during normal business hours to conduct operational audits and examine various aspects of the business.
This includes the right to videotape, photograph, or otherwise record the operation of the franchised business. Auntie Annes can also interview employees, customers, landlords, and suppliers. Additionally, Auntie Annes can audit and examine the franchisee's books, records, accounts, and tax returns related to the franchised business, even electronically.
Auntie Annes may also require franchisees to participate in customer satisfaction surveys or other audit programs to assess compliance with customer service standards. Franchisees are expected to provide full cooperation during any inspection or audit. While inspections are generally at Auntie Annes's expense, franchisees may be charged non-compliance fees and associated costs if the inspection is due to repeated failures to comply with the Franchise Agreement.