Can Beverly Anns Cookie conduct inspections of a Franchised Business at any time?
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, Beverly Anns Cookie has the right to examine a franchisee's business operations at any time during business hours without prior notice. This includes the right to inspect bookkeeping, accounting records, sales and income tax records, and other relevant documentation.
Beverly Anns Cookie may conduct these audits themselves or through independent auditors, who may either visit the franchise location or request the franchisee to submit the necessary materials. Franchisees are obligated to fully cooperate with Beverly Anns Cookie, their representatives, and independent accountants during any examination.
Furthermore, if an examination is required due to a franchisee's failure to provide necessary reports or information or if the examination reveals a failure to report accurately, the franchisee is responsible for reimbursing 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. If an audit reveals that the franchisee's purchases of Beverly Ann's Cookie Truck branded cups are less than 30% of gross sales, the franchisee will pay a $3,000 branded cup audit fee unless they can provide written substantiation of proper usage of branded cups. These audit rights are in addition to any other remedies Beverly Anns Cookie has under the Franchise Agreement and applicable law.