Who pays for the audit of financial statements if Brueggers Bagels requires it?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisee is generally responsible for covering the costs of audits of their financial statements. Specifically, Brueggers Bagels reserves the right to request that a franchisee's annual financial statements be audited by an independent certified public accountant, and the franchisee will bear this expense. However, if the franchisee's facility already requires independent audited financial statements from a different certified public accountant than the one Brueggers Bagels requests, Brueggers Bagels will not unreasonably withhold consent to use the franchisee's existing accountant.

This means that as a prospective Brueggers Bagels franchisee, you should be prepared to pay for an audit of your financial statements if Brueggers Bagels requires it. The cost of an audit can vary depending on the size and complexity of your business, so it's important to factor this potential expense into your financial planning.

It is fairly common in the franchise industry for franchisees to bear the cost of audits, as these are typically seen as a cost of doing business and ensuring compliance with the franchisor's standards. However, it is important to clarify with Brueggers Bagels what circumstances might trigger an audit requirement and to understand the process for selecting an approved accountant. This will help you budget accordingly and avoid any unexpected financial burdens.