Under what condition will a Kitchen Solvers franchisee be required to reimburse Kitchen Solvers for the cost of an inspection or audit?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
g is currently $150 per person.
- (7) Audits and inspections generally will be at our expense. However, if an audit is made necessary by your failure to furnish reports, financial statements, tax returns or schedules as required under the Franchise Agreement, or if any audit or inspection reveals that you have
understated or underreported Gross Sales, Royalty Fees, Brand Fund Fees or other amounts owed to us by an amount greater than 5%, in addition to the amounts owed to us, you must reimburse us the cost and out-of-pocket expenses of the inspe
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, Kitchen Solvers generally bears the expense for audits and inspections. However, a Kitchen Solvers franchisee may be required to reimburse Kitchen Solvers for the cost and out-of-pocket expenses of an inspection or audit under specific circumstances.
These circumstances arise if the audit is necessitated by the franchisee's failure to provide required reports, financial statements, tax returns, or schedules as stipulated in the Franchise Agreement. Additionally, reimbursement is required if an audit or inspection reveals that the franchisee has understated or underreported Gross Sales, Royalty Fees, Brand Fund Fees, or other amounts owed to Kitchen Solvers by an amount greater than 5%.
This provision ensures that Kitchen Solvers can recover expenses incurred due to a franchisee's non-compliance or misreporting. The cost for an audit can generally range from $500 to $2,000. It is important for prospective franchisees to understand their reporting obligations and ensure accurate financial reporting to avoid potential reimbursement costs.