Franchisors, Franchising Agreements and the Right of Inspection

In order to maintain the quality and consistency of a franchised outlet it becomes necessary to inspect the facilities and franchise operations to make sure they are in compliance with confidential operations manual at all times. Franchisors must therefore have the right of inspection to check the books, audit the company and insure that image is maintained. In our franchise company I inserted a special clause into the franchise agreements, which address this issue, you will find it below;

3.17.2 Right of Inspection

Franchisor has the right, upon a minimum of forty-eight (48) hours notice, to inspect and audit Franchisee