What are some examples of 'other non-compliance' that could trigger an audit by Endless Summer Sweets?

According to the 2024 Endless Summer Sweets Franchise Disclosure Document, an audit may be triggered if a franchisee fails to submit required reports or engages in other forms of non-compliance. Additionally, if an inspection of the business is conducted due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification, this could also lead to an audit.

If Endless Summer Sweets conducts an audit due to the franchisee's failure to submit required reports or other non-compliance, and the audit concludes that the franchisee under-reported gross sales, the franchisee will be responsible for covering the costs of the audit. This highlights the importance of accurate and timely reporting to avoid potential financial penalties.

Furthermore, if a Endless Summer Sweets franchisee's business is not in compliance with the system specifications or the franchise agreement, and they fail to correct the non-compliance after 30 days’ notice, Endless Summer Sweets may charge the franchisee $500. Additionally, Endless Summer Sweets may charge $250 per week until the non-compliance is corrected. This underscores the need for franchisees to adhere to the franchisor's standards and address any issues promptly to avoid incurring additional fees.