Under what condition can Chicken Guy require a franchisee to submit audited financial statements?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to request that a franchisee submit audited financial statements. This is permissible at Chicken Guy's discretion, and the franchisee is responsible for covering the expense of the audit. The audit must be conducted by a certified public accounting firm that is acceptable to Chicken Guy. This audit can be for any fiscal year or any period within a fiscal year.

This provision allows Chicken Guy to ensure the accuracy and completeness of the financial information it receives from franchisees. It also ensures franchisees are using accounting practices that accurately reflect their financial condition. While Chicken Guy can request these statements at their discretion, franchisees should be prepared to provide them if requested.

For a prospective franchisee, this means they should factor in the potential cost of an audit when considering the financial requirements of the franchise. It is important to maintain accurate and up-to-date financial records and to be prepared to engage a certified public accounting firm acceptable to Chicken Guy if requested. Understanding this requirement upfront can help franchisees budget accordingly and maintain a transparent financial relationship with Chicken Guy.