How often may CJR conduct audits to assess a Carls franchisee's compliance with their obligations under Section 13(P)?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- (7) Franchisee shall make available to CJR all information necessary for Franchisee to demonstrate compliance with its obligations under this Section 13(P). Franchisee will cooperate with CJR, its internal auditors and external auditors for the purpose of inspecting, examining, and assessing Franchisee's compliance with its obligations under this Section 13(P). This Auditing may be conducted through measures including, but not limited to, manual reviews and automated scans, as well as technical and operational testing. Auditing may take place at least once every twelve (12) months; and
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carls has the right to audit a franchisee's compliance with obligations under Section 13(P) of the franchise agreement. These audits can be conducted by Carls, its internal auditors, or external auditors.
The audit may include manual reviews, automated scans, as well as technical and operational testing. These audits can occur at least once every twelve months.
This means that Carls franchisees should be prepared for regular audits to ensure they are meeting their obligations related to data privacy and consumer information handling as outlined in Section 13(P) of the franchise agreement. Franchisees must cooperate with these audits and provide all necessary information to demonstrate compliance.