If a Checkersrallys audit reveals a discrepancy greater than 2%, what costs must the franchisee reimburse to Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, if an audit reveals an understatement of net sales exceeding 2%, the franchisee is responsible for covering the expenses associated with the audit or inspection.

These expenses include charges from attorneys and independent accountants involved in the audit. Additionally, the franchisee must reimburse Checkersrallys for travel expenses, room and board, and the compensation of Checkersrallys's employees who participated in the audit.

This provision incentivizes franchisees to maintain accurate financial records and promptly report sales figures. Franchisees should ensure their reporting is thorough and timely to avoid triggering an audit and the associated reimbursement costs. Failing to do so could result in significant and unexpected expenses for the franchisee.