My brother lost his franchise a year ago for doing some things that violated his franchise agreement. If I apply for a franschise and use his money to puchase the franchise location, can the franchise investigate the source of funds used to purchase the location? Does a franchise have the right to investigate y bank accounts to prove I have the money? I am providing a financial statement to them. But I dont want them to get my tax returns or bank statements because it will show I dont hav ethe net worth they require in order to give me a franchise.

I own a subway in Rochester NY. I has a similar issue with corporate headquarters. In our franchise agreement you pretty much give the corporate parent the authority to audit your records whenever they want, to investigate and make sure that you are a qualified franchisee.

So, if the franchise agreement is thorough, then you have no choice but to comply. Otherwise the can kick you out of the business and take it over and even sell it to another franchisee for cheap just to get rid of you.