What records of a Degree Wellness franchise can Degree Wellness inspect and audit?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2 Our Right to Audit. We have the right at any time during business hours, and without advance notice to you, to inspect and audit, or cause to be inspected and audited, the business records, bookkeeping and accounting records, sales and income tax records and returns and other records of the Franchise, and the books and records of any corporation, limited liability company, or partnership that holds the Franchise. You agree to fully cooperate with our representatives, agents, and any independent accountants we may hire to conduct any inspection or audit, and to pay upon demand any underpayment found to have occurred, plus interest at the past due payment rate set forth earlier in this Agreement. You agree to supply us or our representatives with true, accurate and complete copies of requested documents
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness retains the right to inspect and audit various records of a franchise. Degree Wellness can inspect and copy any books, referral sources, marketing and advertising, records, and documents relating to the operation of the franchise. This includes all records required to be maintained or furnished as per the agreement. Degree Wellness also has the right to record telephone calls placed to the franchised business.
Degree Wellness can also inspect and audit the business records, bookkeeping and accounting records, sales and income tax records and returns, and other records of the franchise. This extends to the books and records of any corporation, limited liability company, or partnership that holds the franchise. Degree Wellness can perform these inspections and audits at any time during business hours and without advance notice.
As a prospective franchisee, it is important to maintain accurate and complete records, and to cooperate fully with Degree Wellness during any inspections or audits. Failure to do so could result in penalties or other enforcement actions. Franchisees are responsible for any underpayment found during an audit, plus interest at the rate specified in the agreement.