When a national quick-serve franchisor received whistleblower information on a franchisee underreporting sales, they contacted HS Brands to verify the claim.
The Challenge
Franchisors want positive and productive relationships with their franchisees. When suspicions arise it is often best to resolve an issue with an objective third-party team. HS Brands investigative approach ensured professionalism and discretion to resolve the issue and maintain a positive relationship.
The Approach
HS Brands employed several investigative techniques including a financial audit, observations, and interviews to resolve the issue. The investigation determined that the franchise was employing three separate schemes to avoid recording more than a half million dollars in off-line sales.
The Results
The investigative efforts allowed the franchisor to collect on the documented monies owed for royalties and investigative costs and positioned them to take corrective action for the breach of the franchise agreement.
HS Brands Franchise Assurance programs have recovered millions of potentially lost dollars for franchisors over the past decade by employing its expert knowledge and professional techniques.
