What costs are included when Ben Jerrys charges a franchisee for an audit?

According to Ben Jerrys's 2025 Franchise Disclosure Document, if an audit reveals an understatement of 3% or more in the financial reports a franchisee provides, the franchisee is responsible for covering the costs and expenses associated with the inspection and audit. These costs include travel, lodging, wage expenses, and reasonable accounting and legal costs incurred by Ben Jerrys.

This means that if Ben Jerrys suspects a franchisee has underreported their gross sales or other financial data by a significant margin (3% or more), they can conduct a thorough audit at the franchisee's expense. The franchisee will have to pay for not only the direct costs of the audit itself, such as the fees charged by accountants and lawyers, but also the travel, lodging, and wages of Ben Jerrys's personnel involved in the audit.

For a prospective Ben Jerrys franchisee, this highlights the importance of maintaining accurate and transparent financial records. Underreporting, even unintentionally, can lead to a costly audit. Franchisees should ensure their accounting practices are sound and that they fully understand the reporting requirements outlined in the Franchise Agreement to avoid triggering an audit and incurring these expenses. This policy is fairly standard in franchising, as franchisors need to ensure accurate royalty payments and protect the integrity of the brand.