Am I required to cooperate with Beverly Anns Cookie and their representatives during an audit of my Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
uation may include observing or participating during business hours. We may conduct our evaluation at any time and without prior notice. During the course of our inspections, we and our representatives will use reasonable efforts to minimize our interference with the operation of your Franchised Business, and you, your employees and independent contractors will cooperate and not interfere with our inspection. You consent to us accessing your Technology and retrieving any information we deem appropriate in conducting the inspection. At all times and without prior notice to you, we and our designated agents or representatives may: (1) inspect the Franchised Business, GR Vehicle, (and/or any Additional Equipment); (2) photograph the Franchised Business, GR Vehicle, (and any Additional Equipment) and observe and videotape the operation thereof; (3) observe any products and supplies; (4) interview the Franchised Business' managers, personnel, and customers; (5) inspect and copy any books, records, and documents relating to the Franchised Business' operation; and (6) access any electronic records related to the Franchised Business.
Audit
We may, at any time during your business hours, and without prior notice to you, examine your Franchised Business bookkeeping, and accounting records, sales and income tax records and returns, and other records. We may also conduct an audit through independent auditors, which may involve auditors conducting an examination at the location of your Franchised Business or, alternatively, your submission of such materials to auditors. We may also requir
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, as a franchisee, you are required to cooperate fully with Beverly Anns Cookie, their representatives, and independent accountants in any examination of your Franchised Business.
Beverly Anns Cookie may examine your business's bookkeeping, accounting records, sales and income tax records, and returns at any time during business hours without prior notice. These audits can be conducted by Beverly Anns Cookie's staff or independent auditors, either at your franchise location or through submission of materials to the auditors. You may also be required to conduct a self-audit according to Beverly Ann's Cookie's instructions and system standards.
Furthermore, if an examination is required because you failed to furnish reports, records, or other information or to provide them on time, or if the examination reveals a failure to report, you must reimburse Beverly Anns Cookie for the costs of the examination. These costs may include charges from attorneys and independent accountants, as well as travel expenses, room and board, and compensation for Beverly Anns Cookie's employees. Additionally, if an audit reveals that your purchases of Beverly Ann's Cookie Truck branded cups equals less than thirty percent (30%) of your gross sales, you shall pay a branded cup audit fee of $3,000 unless you can provide written substantiation of proper usage of branded cups in your Franchised Business. These remedies are in addition to Beverly Ann's Cookie's other remedies and rights under the Franchise Agreement and applicable law.