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 when confronted with a clean audit report. Plus, why royalty auditing is becoming more common as franchisees share audit templates and legal strategies. If you own or operate a franchise unit and have never examined your royalty statements, this episode will change how you read them. #FranchiseAudit #RoyaltyOverpayment #FranchiseRecovery #FranchiseAccounting #FranchiseDisclosure #SubwayFranchisee #Business #FranchiseOperations #FranchiseFinance #OperationalAudit #FranchiseCompliance #FranchiseLaw #FranchiseManagement #FranchiseStrategy #FexingoBusiness #BusinessPodcast #FranchisePodcast #FranchiseConversations Keep every episode free: buymeacoffee.com/fexingo