records relative to the Franchise as privileged information. Each report and financial statement shall be signed and verified by Franchisee in the manner Pretzel Time prescribes. Pretzel Time reserves the right to require Franchisee to have audited or reviewed financial statements prepared on an annual basis. In the event that an audit discloses that Franchisee's actual net revenues exceed Franchisee's reported net revenues by two percent (2%) or more for any thirty day period, Franchisee is obligated to pay to Pretzel Time, within fifteen (15) days after receipt of the inspection or audit report, the royalty of seven percent (7%) and the Advertising Fund Fee of one percent (1%) of the amount of such understatement plus interest from the date such payments were originally due. The audit will be conducted at the expense of Pretzel Time, provided that if an audit disclosed an understatement of two percent (2%), as described above, Franchisee will bear the cost of the audit, including without limitation, the charges of attorneys and any independent accountants, their travel expenses, room and board, and compensation of Pretzel Time's representatives and independent accountants. Providing that in no case will Franchisee be obligated to pay more than ten thousand dollars ($10,000) for such inspection or audit costs. The foregoing remedies shall be in addition to Pretzel Time's other remedies and rights under this Agreement or applicable law. 16.B. RIGHT OF ENTRY AND INSPECTION. To determine whether Franchisee and the Unit are complying with this Agreement and with all Pretzel Time's standards and operations as prescribed by Pretzel Time, Pretzel Time or its designated agents shall have the right at any reasonable time and without prior notice to Franchisee to: a. Inspect the Unit; b. Observe, photograph and video tape the Unit's operations for such consecutive or intermittent periods as