Under what circumstances can Burneys Sweets More charge a franchisee for the costs of an inspection?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| (vi) Inspection. Franchisor, through its employees and/or any agents designated | |
|---|---|
| by Franchisor from time to time, may at any time during business hours, and without prior | |
| notice to Franchisee enter upon and inspect the Shop and examine Franchisee’s Computer | |
| Systems, databases, business records and other supporting records and documents in order | |
| to verify compliance with its Data Protection and Security Policies, and Privacy Laws. Any | |
| such inspection shall be made at Franchisor’s expense, provided that if such inspection is | |
| necessitated by Franchisee’s repeated or continuing failure to comply with the Data | |
| Protection and Security Policies, Privacy Laws, this Agreement, Franchisor may charge | |
| Franchisee for the costs of making such inspection, including without limitation, travel | |
| expenses, room and board, and compensation of Franchisor’s employees and/or agents. |
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More, through its employees or designated agents, can inspect a franchisee's shop during business hours without prior notice to verify compliance with data protection and security policies and privacy laws. Generally, Burneys Sweets More bears the expense of these inspections.
However, Burneys Sweets More can charge the franchisee for the costs of the inspection if the inspection is required due to the franchisee's repeated or continuing failure to comply with the Data Protection and Security Policies, Privacy Laws, or the Franchise Agreement.
The costs that Burneys Sweets More can charge to the franchisee include, but are not limited to, travel expenses, room and board, and compensation for Burneys Sweets More's employees or agents involved in the inspection. This means that if a franchisee consistently violates the brand's data protection or security protocols, they could face additional financial burdens beyond potential penalties for the violations themselves.