Can Crown Gold Franchising inspect the premises of a Crown Gold Exchange business?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Inspections. Crown Gold Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection.
Franchisee shall cooperate with Crown Gold Franchising's inspectors.
The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials.
Crown Gold Franchising may videotape and/or take photographs of the inspection and the Business.
Crown Gold Franchising may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement.
Without limiting Crown Gold Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection.
If Crown Gold Franchising conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Crown Gold Franchising may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Franchising has the right to inspect the premises of a franchisee's business. Specifically, Crown Gold Franchising may enter the premises during normal business hours to conduct an inspection.
The inspection may include observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Crown Gold Franchising is also permitted to videotape and/or take photographs during the inspection.
It is important to note that the franchisee is required to cooperate with Crown Gold Franchising's inspectors. Furthermore, Crown Gold Franchising may set a minimum score requirement for inspections, and failure to meet this score can result in a default under the franchise agreement. Franchisees are expected to correct any deficiencies noted during an inspection as soon as reasonably practical. If an inspection is triggered by a governmental report, customer complaint, or a default by the franchisee, Crown Gold Franchising may charge the franchisee for all out-of-pocket expenses plus an inspection fee.