Under what conditions will a City Wide franchisee be required to reimburse City Wide for audit costs?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse City Wide for audit costs under specific circumstances related to underreported payments. City Wide retains the right to conduct independent audits of the franchisee's business records or request annual audited or reviewed financial statements.

If an audit reveals that the franchisee has understated any payments to City Wide, the franchisee is obligated to pay the understated amount immediately upon demand. Additionally, interest will be charged on the underpaid amount at the maximum rate permitted by law, calculated from the date the amount was originally due until it is paid.

Beyond the repayment of the understated amount and associated interest, if the audit uncovers an understatement of payments equal to or exceeding two percent (2%), the franchisee will also be responsible for covering all costs and expenses associated with the audit or inspection. This includes, but is not limited to, reasonable accounting and legal fees incurred by City Wide during the audit process. This provision incentivizes accurate reporting and provides City Wide with a mechanism to recover expenses incurred when discrepancies are significant.