The Benefits of a Contract Compliance Engagement
CO-CREATE | CO-DEVELOP | DELIVER
Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I'm Jen Lemanski, and I'm back once again with Carlos Gomez, an Audit Manager and one of the faces of our PKF Texas Contract Compliance Services team. Carlos, welcome back to the Playbook.
Carlos: Thank you, Jen.
Jen: So, we've talked about various aspects of contract compliance services in previous videos. And we've talked about the monetary benefits. What other benefits are there for a contract compliance type engagement?
Carlos: A lot of these are very beneficial to our client in aspect that they don't really have visibility into these third parties. So by doing this, you get to see what territory are they operating in, how much value added into the marketplace, how are they treating your trademark or your intellectual property, is it being used correctly, is it giving every benefit of success in order for it to grow? And at the end develop a higher line for you.
There's a couple different aspects of authorized products:
- Is the logo being used correctly?
- Are they using it in any other type of products that they shouldn't be?
- Are they operating in their territories that they're supposed to and even a distribution chain?
- Are they working with certain retailers that they're allowed to big box stores versus mom and pops?
There's a whole slew of things that we can do to add that extra value to our clients.
Jen: So, this would be primarily the things you're talking about kind of on the franchisor side rather than the franchisee side?
Carlos: It can be on both. Yeah, on the franchisor side, it is more beneficial for those clients so that they get a bigger insight in, but we can also help clean it up for the franchisees. There's a way that they can actually make sure that they're operating in the correct territory is by having more detailed information in their accounting system or in their software that they use to do a service call on a daily basis. You know, that once they understand that the data is important in order to make analysis, then they should jump on board.
Jen: Definitely. Perfect. Well, we'll get you back to talk a little bit more about some other aspects of the contract compliance service area. Sound good?
Carlos: Yes, ma'am.
Jen: For more information about this topic, visit www.PKFTexas.com/ContractCompliance. This has been another thought leadership production brought to you by PKF Texas - The Entrepreneurs Playbook®. Tune in next week for another chapter.