Under what circumstances will Chocolate Fish Coffee charge me their actual cost for an audit?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, under certain conditions, franchisees may be responsible for covering the actual cost of an audit. Chocolate Fish Coffee will only charge franchisees their actual cost for an audit if the franchisee has failed to submit required reports or is otherwise non-compliant. Additionally, if an audit reveals that the franchisee has under-reported gross sales, they will be responsible for the audit costs.

Beyond audits, Chocolate Fish Coffee may also charge franchisees their actual costs for inspections. These costs are only payable if Chocolate Fish Coffee conducts an inspection of the franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification.

It is important for prospective Chocolate Fish Coffee franchisees to understand these potential audit and inspection costs. Maintaining accurate records, submitting reports on time, and adhering to Chocolate Fish Coffee's system standards can help franchisees avoid these charges. Franchisees should clarify with Chocolate Fish Coffee what specific actions or omissions might trigger an audit or inspection and what the estimated cost range could be.