What is Casiola's right regarding examining a Casiola franchisee's business records?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
13.B. FRANCHISOR'S RIGHT TO EXAMINE BOOKS AND RECORDS
Franchisor has the right at any time during business hours, and without prior notice to Franchisee, to examine or audit, or cause to be examined or audited by a third party, the business records, cash control devices, bookkeeping and accounting records, bank statements, sales and income tax records and returns, and other books, statements, and records of the Franchised Business and Franchisee. Franchisee shall maintain complete and accurate copies all such books, statements, records and supporting documents at all times at Franchisee's Administrative Office. Franchisee must fully cooperate with Franchisor, representatives of Franchisor, and third parties hired by Franchisor to conduct any such examination or audit. In the event Franchisor's examination of Franchisee's records reveals that Franchisee underreported any figure to Franchisor by more than 2%, then Franchisee shall reimburse to Franchisor, all of Franchisor's costs in connection with Franchisor's audit/examination.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has the right to examine a franchisee's business records. Casiola can, at any time during business hours and without prior notice, examine or audit a franchisee's business records. This audit can be performed by Casiola or a third party. The specific records subject to examination include business records, cash control devices, bookkeeping and accounting records, bank statements, sales and income tax records and returns, and other books, statements, and records of the Franchised Business and Franchisee.
The franchisee is required to maintain complete and accurate copies of all such books, statements, records, and supporting documents at their Administrative Office at all times. Franchisees must fully cooperate with Casiola, its representatives, and any third parties hired by Casiola to conduct an examination or audit.
If an examination of a franchisee's records reveals that the franchisee underreported any figure to Casiola by more than 2%, the franchisee must reimburse Casiola for all costs associated with the audit or examination. This provision incentivizes franchisees to maintain accurate records and report figures honestly, as inaccuracies exceeding the specified threshold can result in financial penalties to cover audit expenses.