Under what circumstances can Fly To Fit Franchise charge the franchisee for an inspection?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
chise may inform Franchisee thereof by any method that Fly To Fit Franchise deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, Fly To Fit Franchise's master copy will control.
- 11.2 Inspections. Fly To Fit Franchise may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Fly To Fit Franchise's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity,
speaking with employees and customers, and removing samples of products, supplies and materials. Fly To Fit Franchise may videotape and/or take photographs of the inspection and the Business. Fly To Fit Franchise may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Fly To Fit Franchise's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit may charge franchisees for inspections under specific circumstances. Fly To Fit retains the right to inspect the premises of the business during normal business hours, with the franchisee's cooperation. These inspections can include observing operations, physical inventory, evaluating conditions, monitoring sales, and interacting with employees and customers. Fly To Fit may also take photos or videos during the inspection.
Fly To Fit may set a minimum score for inspections, and failure to meet this score can result in a default under the Franchise Agreement. Franchisees are expected to correct any deficiencies noted during an inspection as soon as reasonably practical.
Specifically, Fly To Fit can charge the franchisee for out-of-pocket expenses and its then-current inspection fee if the inspection is conducted due to a governmental report, customer complaint or feedback, or the franchisee's default or non-compliance with System Standards. This includes follow-up inspections after a previous failed inspection. This policy means that franchisees who maintain compliance and address issues proactively are less likely to incur inspection fees, while those with compliance problems or negative feedback may face additional costs.