Under what conditions must a Crave Cookies franchisee reimburse Crave Cookies Franchising for the costs of an audit?

According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee may have to reimburse Crave Cookies Franchising for the costs and expenses associated with an audit under specific circumstances. These circumstances are triggered either by the franchisee's failure to comply with reporting requirements or if an audit reveals significant discrepancies in reported gross sales.

Specifically, Crave Cookies Franchising may require reimbursement if the audit was conducted because the franchisee failed to submit required reports or was otherwise not in compliance with the Crave Cookies system. This implies that maintaining accurate and timely reporting is crucial to avoid potential audit costs.

Additionally, if an audit uncovers that the franchisee understated gross sales by 3% or more for any 4-week period, the franchisee will be responsible for covering the audit expenses. This condition underscores the importance of accurate sales tracking and reporting, as even unintentional errors exceeding the specified threshold can lead to financial repercussions for the franchisee.