Can Craters & Freighters inspect the physical premises of the Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
12. AUDITS AND INSPECTIONS.
- 12.1 Access to Business Records.
Franchisor, any Affiliate of Franchisor, or any designee of Franchisee has the right, at any time during reasonable business hours and without prior notice to Franchisee, to undertake or cause an audit or inspection of the Business Records, accounting records, sales and income tax records and r
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters, its affiliates, or designees have the right to audit or inspect the business records, accounting records, sales and income tax records of the franchisee at any time during reasonable business hours and without prior notice.
While the FDD excerpt explicitly mentions the right to audit and inspect business records, it does not directly state whether Craters & Freighters has the right to inspect the physical premises of the franchised business. However, franchisees must comply with the System Standards established and communicated by Craters & Freighters to protect the reputation and goodwill of Craters & Freighters and the System. This may imply that Craters & Freighters can inspect the premises to ensure compliance with these standards.
Prospective franchisees should clarify with Craters & Freighters the extent to which they conduct physical inspections of the franchised business premises, the frequency of such inspections, and the specific aspects of the premises that are subject to inspection. This will help in understanding the franchisor's oversight and quality control mechanisms.