What right of access does the Bevaris Alliance Franchisor have to the Franchisee's QuickBooks Online account?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchisee shall:
- (b) keep and maintain complete and accurate accounts and records relating to the Franchisee's Business in QuickBooks Online. All such records shall be full, accurate, up to date and sufficient to ascertain the amount of the Royalty Fees due;
- (c) allow representatives of the Franchisor access to the Franchisee's QuickBooks Online account to investigate the Franchisee's records and take copies of the Franchisee's accounts and records on reasonable notice, during Business Hours during the Term and for a period of 7 years after the termination of this agreement; and
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchisee is required to maintain complete and accurate accounts and records related to their business in QuickBooks Online. These records must be full, accurate, up-to-date, and sufficient to determine the amount of royalty fees due to Bevaris Alliance.
Bevaris Alliance's representatives have the right to access the franchisee's QuickBooks Online account to investigate the franchisee’s records and take copies of these records. This access is granted on reasonable notice and during business hours, both during the term of the franchise agreement and for a period of seven years after the agreement's termination.
This requirement allows Bevaris Alliance to monitor the franchisee's financial performance and ensure compliance with the franchise agreement, particularly regarding the calculation and payment of royalty fees. The franchisee must provide access and copies of records, which could involve some administrative burden. The seven-year post-termination access provision is longer than some franchise agreements, so franchisees should be aware of this extended obligation.