So many times, franchisors I've worked with take a passive stance when a Franchisee refuses to cooporate with an audit request. This is a very slippery slope, and I strongly encourage our clients to not be shy when it comes to enforcing the right to audit clause in the franchise agreement. When you fail to default, arbitrate or otherwise deal with this refusal, you open the door for all others to not cooporate with an audit.
Remember, that, in any franchise system, word of the companies failure to enforce this agreement will travel quickly, and others will follow suit.
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As a franchisor of Outback Steakhouses and Brinker brands, I whole heartedly agree. If your franchisee is refusing or even negative toward an audit, you have problems. Bigger problems than the audit.
ReplyDeleteGreg Walther
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