What failure can cause a Kitchen Solvers franchisee to be responsible for the cost of an audit?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, a franchisee may be responsible for the cost of an audit under specific circumstances. Generally, Kitchen Solvers will bear the expense of audits and inspections. However, if a Kitchen Solvers franchisee fails to furnish required reports, financial statements, tax returns, or schedules as mandated by the Franchise Agreement, the franchisee will be responsible for covering the costs associated with the audit.

Furthermore, if an audit or inspection reveals that a Kitchen Solvers franchisee has understated or underreported their Gross Sales, Royalty Fees, Brand Fund Fees, or other amounts owed to Kitchen Solvers by more than 5%, the franchisee must reimburse Kitchen Solvers for the cost and out-of-pocket expenses of the inspection or audit, in addition to paying the amounts they owe.

This provision serves as an incentive for Kitchen Solvers franchisees to maintain accurate and transparent financial records. It also protects Kitchen Solvers from financial losses resulting from inaccurate reporting. The cost of an audit is estimated to be between $500 and $2,000, but this amount can vary based on the circumstances. Franchisees should ensure they understand their reporting obligations under the Franchise Agreement to avoid incurring these additional expenses.