Where will the audit of the Southern Steer Franchisee's financial records be conducted?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Audit Rights.
Within three business days after receiving written notice from the Franchisor, the Franchisee and the Franchisee's accountants will make all of their Financial Records available during business hours for the Franchisor or its designees to review, copy and audit.
The Financial Records for each fiscal year will be maintained by the Franchisee in a safe place for each of the last five fiscal years.
The audit will be conducted at the location where the Franchisee maintains the Financial Records and the Franchisor will be provided with adequate facilities by the Franchisee to conduct the audit.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the audit of a franchisee's financial records will be conducted at the location where the franchisee maintains these records. The franchisee is expected to provide adequate facilities for Southern Steer or its designated representatives to conduct the audit.
This means that prospective Southern Steer franchisees should be prepared to accommodate an audit at their business location. It is standard practice in franchising for franchisors to have audit rights to ensure compliance with financial reporting and payment obligations.
Southern Steer requires franchisees to maintain their financial records in a safe place for the last five fiscal years. Franchisees must also make these records available to Southern Steer or its designees within three business days of receiving written notice. This allows Southern Steer to review, copy, and audit the records during business hours. Franchisees should ensure their record-keeping systems are organized and accessible to facilitate potential audits.