Under what conditions am I required to reimburse Beverly Anns Cookie for the costs of an examination?
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 may be required to reimburse the franchisor for the costs of an examination under specific circumstances. If Beverly Ann's Cookie conducts an examination of your Franchised Business's bookkeeping, accounting records, sales and income tax records, and other records because you failed to furnish required reports, supporting records, or other information, or if you failed to provide these items on time, you will be responsible for reimbursing Beverly Ann's Cookie for the expenses they incur.
These reimbursable costs include, but are not limited to, the charges of attorneys and independent accountants, as well as the travel expenses, room and board, and compensation of Beverly Ann's Cookie's employees. Additionally, if an audit reveals that your purchases of Beverly Ann's Cookie branded cups are less than 30% of your gross sales, you will be required to 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.
This requirement to cover examination costs serves as a financial incentive for franchisees to maintain accurate and timely records and adhere to the brand's standards regarding the use of branded cups. Failing to comply with these requirements can result in unexpected expenses, impacting the franchisee's profitability. It is important to note that these remedies are in addition to any other rights Beverly Ann's Cookie has under the Franchise Agreement or applicable law.