SDM Accounting Insights: What to Expect During a Franchise Audit

Does your franchise agreement include an audit provision? These routine “check-ups” help evaluate whether owner-operators are embracing your business model and complying with the terms of the franchise agreement. For example, are franchisees shortchanging you on royalty payments, using unauthorized suppliers, skipping background checks on new hires or skimping on advertising? Failure to comply with such terms compromises future revenue and the reputation of your brand. We can help enforce the audit provisions of your franchise agreement, as well as bring objectivity and financial expertise to the audit process.

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