Throughout the contractual period that relates the franchisee with the franchisor, the franchisee will receive a series of regular audits. These audits are simple and consist basically in doing a general overview of the franchise operation in terms of accounting, administrative, commercial, territorial brand image, hygiene of the facilities, internal "climate" of the staff, and quality service.
The accounting and management audits generally consist of randomly taking a given procedure and checking it met with the provisions of the Operations Manual and subsequent franchisor communications. Besides, the franchisor could also check the daily cash management procedures and the compliance with government rules, and also the proper functioning of the billing systems (hardware and software), in terms of speed and accuracy.
Commercial and territorial image audits are referred to the proper distribution of the products on the shelves, on the furniture, on the displays and generally around the different sector of the franchise facility, the management of the customer database, and the communications carried out in the territory, especially those which are concerned to advertising, promotion, public relations, events, social networks and the like.
Audits of hygiene and personnel climate consist of visual inspection by the auditor in all sectors of the franchise facility, and then presenting his/her report with his/her view and opinion to the franchisor.
Often the franchisor uses the methodology of "mystery shoppers" that consists of sending fictitious customers to the franchise in order to report to the franchisor how they were treated and how the franchisee's employees have served them.
These audits should be understood by the franchisee and his/her staff as a necessary mechanism to ensure the quality of service and to achieve excellence in building a strong brand and a strong concept in the territory.