During what hours can Chatime inspect and audit the Developer's Operation records?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisor and its agents may at any time during normal Business Hours inspect, audit and make copies or extracts of the records and reports described in clauses 4.1(1) and 4.1(2) and any other business records, bookkeeping and accounting records, electronic records and files, value added, sales, use and service and income tax records and returns, and other records of Developer's Operation and of the Outlets and the books and records of Developer.
- (2) Franchisor may, at any time, during normal Business Hours and one hour before and one hour after normal Business Hours, inspect the premises of any Outlet for the purpose of:
- (a) Monitoring compliance by Developer of its operational obligations under the terms of this Agreement; and
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime, and its agents, can inspect and audit the Developer's Operation records during normal business hours. These inspections can include making copies or extracts of records and reports, business records, bookkeeping and accounting records, electronic records and files, value added, sales, use and service and income tax records and returns, and other records of the Developer's Operation and of the Outlets and the books and records of the Developer.
In addition to inspecting and auditing records, Chatime can inspect the premises of any Outlet during normal business hours, and one hour before and one hour after normal business hours. The purpose of this inspection is to monitor compliance by the Developer of its operational obligations under the terms of the Franchise Agreement.
If an audit reveals an understatement of initial or recurring fees, the Developer must pay Chatime the fees due on the understated amount, plus interest. If the understatement of fees is greater than 2%, or if the audit was required due to the Developer's failure to provide necessary reports or information, the Developer must reimburse Chatime for the cost of the inspection or audit, including legal and accounting fees, and travel and accommodation expenses for Chatime's employees.