Under Reporting Clause Samples
The "Under Reporting" clause establishes the obligations and consequences when a party fails to accurately or fully report required information, such as sales figures, usage data, or other metrics relevant to the agreement. Typically, this clause outlines the process for identifying underreporting, the timeframe for correction, and any penalties or remedies, such as payment of shortfalls or interest. Its core function is to ensure transparency and accountability, thereby protecting the interests of the party relying on accurate reporting and deterring intentional or negligent misreporting.
Under Reporting. If an audit or investigation conducted by us discloses that Area Operator has knowingly maintained false books or records, or submitted false reports to us, or knowingly understated its Net Royalty Sales or withheld the reporting of same as herein provided;
Under Reporting. If an audit or investigation conducted by Franchisor hereof discloses that Operator has knowingly maintained false books or records, or submitted false reports to Franchisor, or knowingly understated its Gross Sales or withheld the reporting of same as herein provided;
Under Reporting. If an audit or investigation conducted by Company hereof discloses that Franchisee has knowingly maintained false books or records, or submitted false reports to Company, or knowingly understated its Gross Sales or withheld the reporting of same as herein provided;
Under Reporting. If an audit or investigation conducted by Franchisor hereof discloses that Franchisee has knowingly maintained false books or records, or submitted false reports to Franchisor, or knowingly understated its Gross Sales or withheld the reporting of same as herein provided, and, without limiting the foregoing, if, on 3 or more occasions in any single 36 month period, any audits or other investigations reveals an under-reporting or under-recording error of 2% or more, or on any single occasion any audit or other investigation reveals an under-reporting or under-recording of 5% or more;