What happens if a Crown Gold Exchange franchisee refuses to cooperate with an audit or inspection?

According to the 2024 Franchise Disclosure Document, if a Crown Gold Exchange franchisee refuses to cooperate with or permit any audit or inspection by Crown Gold Franchising or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2 of the franchise agreement, it constitutes a breach of the agreement.

This lack of cooperation can lead to the termination of the franchise agreement. Crown Gold Exchange retains the right to conduct audits and inspections to ensure compliance with system standards and to protect the brand's integrity. These audits can occur at any reasonable time, and franchisees are expected to provide all necessary books, records, and supporting documentation.

Franchisees are obligated to cooperate with Crown Gold Exchange's inspectors during inspections, which may include observing operations, conducting physical inventories, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Crown Gold Exchange may also videotape or take photographs during these inspections. Failure to comply with these requirements provides grounds for termination of the franchise agreement.