Under what condition can Checkersrallys require a franchisee's annual financial statements to be audited, and who bears the expense of the audit?

According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys reserves the right to require that a franchisee's annual financial statements be audited by an independent certified public accountant approved by them. The franchisee is responsible for covering the expense of this audit.

This means that while Checkersrallys does not automatically require an audit every year, they can impose this requirement at their discretion. The FDD does not specify the exact conditions that would trigger this requirement, giving Checkersrallys broad latitude to request an audit.

For a prospective franchisee, this implies a potential, unplanned expense. It would be prudent to inquire with Checkersrallys about what circumstances might lead them to require an audit to better prepare for such a possibility. Understanding the criteria, even if general, can help in financial planning and risk assessment.