What costs can Aw charge to an Aw franchisee if the franchisee is required to reimburse Aw for an audit?

According to Aw's 2025 Franchise Disclosure Document, if an audit is required due to a franchisee's failure to provide necessary reports, records, information, or financial statements on time, or if the audit reveals an understatement of Gross Revenue exceeding two percent (2%) for any period, the franchisee is responsible for reimbursing Aw for the cost of the audit. This reimbursement covers several specific expenses.

The costs that Aw may charge include the charges of attorneys and any independent accountants involved in the audit. Additionally, the franchisee must cover the travel expenses, room and board, and applicable per diem charges for Aw's employees who participate in the inspection or audit. This means that franchisees could face significant expenses beyond the initial costs of operating the franchise if they fail to maintain accurate records or comply with reporting requirements.

This provision highlights the importance of accurate financial reporting and compliance with Aw's requirements. Franchisees should ensure they have systems in place to maintain accurate records and submit reports on time to avoid triggering an audit and the associated costs. The potential for these audit-related expenses should be factored into a prospective franchisee's financial planning.