What must Fitstop franchisees permit during an inspection of their financial documents?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
p contracts, and (b) any Member reciprocity, loyalty and/or reward programs we determine to establish, implement or otherwise administer.
- 11.3.12 Employment Law Compliance, Audit, and Self-Certification. Without limiting the other provisions contained herein, if we reasonably request you to do so, you must allow our representative (including an accountant, auditor or other third party engaged by us), to inspect or audit, and copy your payroll records, employee entitlements or other related labor or employment records, whether located on the Premises or elsewhere or stored electronically. Our reasonable costs in undertaking an audit under this section will be paid for by you. You must (a) immediately comply and cooperate with any audit or investigation undertaken by any employment regulatory authority or its agents or by us; and (b) immediately
on becoming aware of an audit or investigation undertaken by any employment regulatory authority, advise us; and (c) at our request, provide us with all relevant information and documents. In addition to the other obligations in this section, you will certify to us on an annual basis and by a date advised by us, that you are in compliance with all applicable workplace laws.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must allow Fitstop's representatives to inspect or audit and copy payroll records, employee entitlements, or other related labor or employment records if reasonably requested. This includes records located on the premises, elsewhere, or stored electronically. The franchisee is responsible for Fitstop's reasonable costs in undertaking such an audit.
Furthermore, Fitstop franchisees must comply and cooperate with any audit or investigation undertaken by any employment regulatory authority or its agents or by Fitstop. Franchisees must also inform Fitstop immediately upon becoming aware of such audits or investigations and provide all relevant information and documents at Fitstop's request.
In addition to these obligations, Fitstop franchisees must certify annually that they comply with all applicable workplace laws. If audits reveal systematic or substantial fraudulent activities, such as falsifying pay records or misrepresenting minimum pay rates, Fitstop reserves the right to terminate the Franchise Agreement for cause.