What rights do Beverly Anns Cookie or its representatives have to evaluate a Franchised Business's operations?
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 Ann's Cookie has extensive audit rights to ensure franchisees comply with system standards. Beverly Ann's Cookie may examine a franchisee's bookkeeping, accounting records, sales and income tax records, and other records at any time during business hours without prior notice. This audit can be conducted by Beverly Ann's Cookie's staff or independent auditors, either at the franchise location or through submission of materials. Franchisees must fully cooperate with any examination.
Furthermore, Beverly Ann's Cookie can require a franchisee to conduct a self-audit according to their instructions and system standards. If a franchisee fails to provide required reports or information, or if an examination reveals a failure to report accurately, the franchisee must reimburse Beverly Ann's Cookie for the costs of the examination.
Additionally, if an audit reveals that a franchisee's purchases of Beverly Ann's Cookie branded cups are less than 30% of their gross sales, the franchisee will pay a $3,000 branded cup audit fee unless they can provide written proof of proper usage of branded cups. These audit rights are in addition to any other remedies Beverly Ann's Cookie has under the Franchise Agreement or applicable law, giving Beverly Ann's Cookie broad authority to monitor and enforce compliance within its franchise system.