How much notice will Fitstop provide before inspecting a franchisee's 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.
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. Fitstop will provide reasonable demand for the information. Additionally, Fitstop requires franchisees to provide a copy of the Franchise's financial statements, including profit and loss statements, by April 15th of each year, if reasonably requested.
This means that as a Fitstop franchisee, you should be prepared to provide financial records to Fitstop on a quarterly basis if requested with reasonable notice. Furthermore, you are obligated to furnish annual financial statements by April 15th each year. It is important to maintain accurate and organized financial records to comply with these requirements.
Failure to comply with Fitstop's audit requests or to provide the required financial statements could potentially lead to consequences outlined in the franchise agreement. Therefore, prospective franchisees should carefully consider the implications of these audit and reporting requirements and ensure they have the resources and systems in place to meet these obligations.