Under what conditions will a Crave Cookies franchisee be required to reimburse Crave Cookies Franchising for the costs of an audit?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee may have to reimburse Crave Cookies Franchising for the costs and expenses of an audit under specific circumstances. These circumstances are triggered if the audit was conducted because the franchisee failed to submit required reports or was otherwise not in compliance with the Crave Cookies system.

Another condition that would require the franchisee to reimburse Crave Cookies Franchising for audit costs is if the audit reveals that the franchisee understated gross sales by 3% or more for any 4-week period. This provision ensures that franchisees accurately report their sales figures, as underreporting can affect royalty payments and the overall financial health of the franchise system.

It is important for prospective Crave Cookies franchisees to understand these conditions, as audit costs can be significant. Franchisees should ensure they comply with all reporting requirements and maintain accurate records to avoid triggering an audit and potential reimbursement obligations. This policy is fairly standard in franchising, as franchisors need to ensure brand standards and accurate financial reporting across all locations.