Who pays for the costs of an audit of a Fitstop franchisee's records?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for covering the reasonable costs associated with an audit of their records. Specifically, if Fitstop requests an audit of a franchisee's payroll, employee entitlements, or other related labor or employment records, the franchisee must allow Fitstop's representatives to inspect or audit and copy these records.
This means that if Fitstop finds it necessary to conduct an audit to ensure compliance with workplace laws or to investigate potential fraudulent activities, the franchisee will bear the financial burden of the audit. This includes the costs of engaging accountants, auditors, or other third parties to perform the audit.
This requirement underscores the importance of maintaining accurate and transparent records related to employment and payroll. Franchisees should ensure they are compliant with all applicable workplace laws and regulations to avoid triggering an audit, which could result in unexpected expenses. Additionally, franchisees must cooperate fully with any audit or investigation undertaken by employment regulatory authorities or Fitstop itself, providing all relevant information and documents as requested.