Franchise & Channel Audits

Franchisor royalty income depends on what franchisees actually report — and what they quietly leave out. The most common leakage: jobs done "on the side" for a customer, often for cash, where the income is neither recorded nor declared. KGAC has audited franchise networks for two decades, including IPO-listed franchisors and India's largest IT-education chain.

Scope of franchise & channel review

• Periodic compliance audits at franchisee locations.
• Royalty calculation verification.
• SOP adherence at centre / store level.
• Customer-experience and brand-standard checks.
• Mystery audits to validate self-reported numbers.
• Loss prevention diagnostics for retail and channel networks.

The Loss Prevention overlay

We make retail and channel controls robust to prevent losses — shrinkage, off-book sales, royalty leakage, asset misappropriation, and SOP drift — through a combination of process audit, mystery audit, and physical verification at store and warehouse level.