Royalty Audits

Franchisers can be extremely profitable if royalty payments are monitored and managed well. Accurate royalty and marketing fund payments not only benefit you as the franchiser, they also benefit all of your individual franchise owners — assuring dollars for marketing and promotional programs are shared fairly by all franchisees.

Audits are one way to assure royalty payment and operational compliance.   However, many franchisers are reluctant to audit their franchisees because they see them as an impediment to their business relationship. An audit initiative that is properly communicated and executed can be met with minimal resistance. The honest franchisees will be supportive because the objective is to ensure a level playing field. It is in everyone’s interest that everyone pays their fair share.

Under-reporting of appropriate royalties is at the heart of franchise auditing, but it can also identify other issues that can ultimately cut into profitability such as:


We have a long history of working with some of the country’s most successful franchisers. We provide a more efficient and less costly audit than large CPA firms with high overhead. We specialize in helping franchisers with all financial aspects of their business. Our team has served as the CFO of several franchises and has experience as a franchisee as well. This experience has provided us with the understanding of the sensitive nature of the franchisor/franchisee relationship. We work hard to preserve that relationship while providing independent objective audits.