What information must Fitstop franchisees provide during an inspection of their financial documents?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
6.10 Right to Audit and/or Inspect. In addition, we reserve the right to audit your financial information quarterly upon reasonable demand and require that you provide to us on or before April 15 of each year a copy of the Franchise's financial statements, including profit and loss statements, that are reasonably requested by us.
11.3.4 We may send a representative or representatives to visit the Premises at such times as we may determine in our sole and absolute discretion.
You shall be present during such visits if we request upon prior notice of such visits and shall cooperate fully with our personnel during such visits.
You shall make available to our representatives any information, reports, accounts, books, records, orders, receipts, statements, and such other information we request and shall allow us to access the Franchise's computers and computer records.
Such visits shall be during your normal business hours and will take place at the Franchise unless the Parties agree otherwise.
You must (7) give us access at all times to your Computer System and Required Software, including providing details of any access passwords and other access codes required, to enable us to upload or download information and to monitor and audit the Franchise's data and reports; (8) enter all information onto the Required Software and the CMS as required by us and ensure all information required by us is inputted on receipt of the information as expediently as possible and in any case by 5 p.m. local standard time of the next calendar day of the request;
- 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
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop reserves the right to audit a franchisee's financial information quarterly, given reasonable demand. Franchisees must also provide a copy of the franchise's financial statements, including profit and loss statements, by April 15th of each year, if reasonably requested by Fitstop.
During visits from Fitstop representatives, franchisees must be present if requested with prior notice and must fully cooperate with the personnel. Franchisees are obligated to provide any information, reports, accounts, books, records, orders, receipts, statements, and other information that Fitstop requests. They must also allow Fitstop to access the franchise's computers and computer records during normal business hours, unless otherwise agreed upon.
Additionally, franchisees must grant Fitstop access to their Computer System and Required Software at all times, including providing details of any access passwords and other access codes required. This enables Fitstop to upload or download information and to monitor and audit the Franchise's data and reports. Franchisees are also required to enter all information onto the Required Software and the CMS as required by Fitstop, ensuring all information is inputted on receipt of the information as expediently as possible and in any case by 5 p.m. local standard time of the next calendar day of the request.
Furthermore, if Fitstop reasonably requests, franchisees must allow a representative (including an accountant, auditor or other third party engaged by Fitstop) to inspect or audit, and copy their payroll records, employee entitlements or other related labor or employment records, whether located on the Premises or elsewhere or stored electronically. The franchisee will be responsible for Fitstop's reasonable costs in undertaking such an audit. Franchisees must also immediately comply and cooperate with any audit or investigation undertaken by any employment regulatory authority or its agents or by Fitstop, and provide Fitstop with all relevant information and documents at their request. They must also certify to Fitstop on an annual basis that they are in compliance with all applicable workplace laws.