Can Golden Krust Caribbean Restaurant audit my business at any time during business hours?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
O INSPECT THE RESTAURANT**
To determine whether you and the Restaurant are complying with this Agreement and all System Standards, we and our designated agents have the right at any time during your regular business hours, and without prior notice to you, to:
- (1) inspect the Restaurant; and
- (2) remove samples of any products, materials or supplies for testing and analysis.
B. OUR RIGHT TO AUDIT
We have the right at any time during your business hours, and without prior notice to you, to inspect and audit, or cause to be inspected and audited, your (if you are a corporation, limited liability company or partnership) and the Restaurant's business, bookkeeping and accounting records, sales and income tax records and returns and other records. You agree to cooperate fully with our representatives and independent accountants we hire to conduct any such inspection or audit. In the event such inspection or audit is made necessary by your failure to furnish reports, supporting records or other information as herein required, or to furnish such items on a timely basis, or in the further event that the audit reveals that you have understated Gross Sales by two percent (2%) or more, you agree to reimburse us for the cost of such inspection or audit, including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board and compensation of our employees. The foregoing remedies are in addition to our other remedies and rights under this Agreement and applicable law.
XIII. TRANSFER
A. BY US
This Agreement is fully transferable by us and will benefit any transferee or other legal successor to our interests herein.
**B.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant has the right to audit a franchisee's business at any time during business hours. Specifically, Golden Krust Caribbean Restaurant can inspect and audit the franchisee's and the restaurant's business, bookkeeping, accounting records, sales and income tax records, and other records without prior notice. The franchisee is expected to fully cooperate with Golden Krust Caribbean Restaurant's representatives and independent accountants during any inspection or audit.
If an audit is required because the franchisee failed to provide reports, records, or other information on time, or if the audit reveals that the franchisee understated gross sales by 2% or more, the franchisee must reimburse Golden Krust Caribbean Restaurant for the cost of the audit. This reimbursement covers expenses such as attorney and accountant fees, travel, room and board, and compensation for Golden Krust Caribbean Restaurant's employees.
In addition to the audit rights, Golden Krust Caribbean Restaurant also has the right to inspect the restaurant at any time during regular business hours without prior notice to ensure compliance with the franchise agreement and system standards. This includes the right to remove samples of products, materials, or supplies for testing and analysis. These audit and inspection rights are in addition to any other remedies and rights that Golden Krust Caribbean Restaurant has under the agreement and applicable law, giving them broad oversight and enforcement capabilities.