Can Crown Gold Franchising videotape or photograph inspections of a Crown Gold Exchange business?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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 videotape and/or take photographs during inspections of a franchisee's business. This is part of their broader right to enter the premises during normal business hours to conduct inspections.
These inspections may include observing operations, conducting physical inventory, evaluating the physical condition of the premises, monitoring sales activity, speaking with employees and customers, and even removing samples of products, supplies, and materials. Franchisees are obligated to cooperate with Crown Gold Franchising's inspectors during these visits.
Crown Gold Franchising may also set minimum score requirements for inspections, and failure to meet these scores 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 the franchisee's non-compliance with system standards, Crown Gold Franchising may charge the franchisee for all out-of-pocket expenses plus an inspection fee.