A royalty audit is an investigation conducted by the franchisor to ensure that franchisees are accurately reporting their sales and paying the correct amount of royalty fees. Audits are typically performed annually or as specified in the franchise agreement. Franchisees are required to provide access to their financial records and cooperate with auditors. While royalty audits can be an inconvenience, they help maintain transparency and fairness within the franchise system.
Royalty Audit
This term
A royalty audit is an examination of a franchisee's financial records to ensure proper royalty payments.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
