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How Franchisees Use Royalty Audits to Recover Overpayments
Most franchisees pay royalties on gross revenue and never think twice. But a growing number are hiring specialty auditors to pore over franchise disclosure documents and find systematic overcharges. In this episode, Lucas and Luna break down how a multi-unit Subway franchisee in Florida discovered $47,000 in mistaken royalty payments over three years — and how the audit paid for itself 12 times over. They walk through the mechanics of a royalty audit, where the errors hide (ad fund contributions, product mix accounting, and tiered rate misapplications), and what the franchisor typically does…
The skinny
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