Franchisee Validation Audit

The core principal of Stark & Stark’s Proactive Franchise Solutions is for franchisors to proactively identify System issues and implement remedial measures prior to such issues escalating into expensive and costly legal problems.

A franchisor is not in a position to proactively resolve issues at an early stage, unless it first becomes aware of its franchisees’ concerns and issues. The Franchisee Validation Audit seeks to provide a franchisor with an objective mechanism to gain an awareness of certain issues and concerns which if left unchecked, could potentially escalate into System wide disputes.

The Franchisee Validation Audit is performed in two stages. In the first stage, we will conduct franchisee validation calls to a representative cross-section of System franchisees, where the franchisee will believe he or she is speaking with a prospective franchisee candidate. During the second stage, we will conduct calls with a representative cross-section of System franchisees, where the franchisee will be advised he or she has been chosen to participate in a franchisee satisfaction survey.

The franchisor will then receive a report identifying any concerns and issues that were raised by franchisees, that we believe will escalate into legal problems unless the Franchisor implements measures to resolve these matters.

We will then work with the franchisor to assess various resolutions of the issues identified and assist the franchisor with implementing such solutions.

Stark & Stark’s Proactive Franchise Solutions include:

• 360° Franchise Sales Compliance
• Proactive Operational Compliance
• Disclosure Document Audits
• Proactive Communications
• Disaster Preparedness

The predicate of each Proactive Franchise Solution is to assist a franchisor in shrinking its bucket of legal issues and problems, resulting in reduced legal costs, increased System compliance and improved franchisee relations.

For questions, or additional information on how Stark & Stark can help you & your franchise system, please contact Adam J. Siegelheim, Chair of Stark & Stark’s Franchise group at 609.791.7003 or via email, asiegelheim@stark-stark.com.