Does Best Brains have full access to a franchisee's data and system?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
We shall have full access to all of your data, system and related information by means of direct access whether in person or by electronic means.
- Audit. You shall allow us or our representatives to enter, without prior notice, your business premises during business hours to inspect and audit your business operations, books and records or to request such items be sent to us. If any such audit reveals an understatement of the Gross Sales of the Franchised Business for any period, you shall pay to us within ten days after receipt of the inspection or audit report, the royalty fee, advertising, and other fees plus interest and late fees due on the amount of the understatement.
Further, if such an audit is made necessary by your failure to furnish reports, financial statements, tax returns or schedules as herein required, or if an understatement of Gross Sales for any period is determined by any such inspection or audit to be greater than five percent, you shall reimburse us for the cost of such inspection or audit including attorney or accountant fees, travel expenses, and employee compensation and we shall have the right to require you to furnish, at your cost, audited financial statements thereafter.
In addition, you shall pay for all costs, as specified above, of the inspection and audit if your books and records are not produced at the time of the inspection and audit, provided that we notified you at least five days prior to the scheduled inspection and audit date. We shall have the right to review the operation and administration of the Franchised Business by quality control testing, periodic field reviews and such other tests, reviews and inspections and other reasonable actions deemed desirable by us
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Best Brains has extensive access to a franchisee's data and systems. Specifically, Best Brains has full access to all franchisee data, systems, and related information through direct access, whether in person or by electronic means. This allows Best Brains to monitor and oversee the franchisee's operations closely.
Best Brains also has the right to enter a franchisee's business premises without prior notice during business hours to inspect and audit business operations, books, and records. Alternatively, they can request these items to be sent to them. If an audit reveals an understatement of gross sales, the franchisee is responsible for paying the royalty fee, advertising, and other fees, plus interest and late fees on the understated amount within ten days of receiving the audit report.
Furthermore, if the audit is necessitated by the franchisee's failure to furnish required reports, financial statements, tax returns, or schedules, or if the understatement of gross sales exceeds five percent, the franchisee must reimburse Best Brains for the cost of the inspection or audit. This includes attorney or accountant fees, travel expenses, and employee compensation. In such cases, Best Brains can also require the franchisee to provide audited financial statements at their own cost thereafter. Additionally, franchisees are responsible for covering all inspection and audit costs if their books and records are not produced at the time of inspection, provided they received at least five days' notice. Best Brains also retains the right to review the operation and administration of the franchised business through quality control testing, periodic field reviews, and other inspections and actions they deem desirable.