Under what conditions will Advanced Mobile Iv And Amiv charge its franchisees for an audit?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
Note 6. Audits. We may audit your reports, books, statements, business records, cash control devices, and tax returns at any time during normal business hours. Audits will be conducted at our expense unless you understate the Gross Sales for any reported period or periods by more than 2 percent or unless you fail to deliver any required report of Gross Sales or any required financial statement in a timely manner. In the event of an understatement or failure to deliver, you will reimburse us for all audit costs. These will include, among other things, the charges of any independent accountant and the travel expenses, room, board, and compensation of our employees incurred in connection with the audit. You will immediately pay all Royalty Fees, Marketing Fees, and late payment charges that the audit determines are owed. These payments will not prejudice any other remedies we may have under the Franchise Agreement or by law.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, franchisees may be responsible for covering the costs of an audit under specific circumstances. Advanced Mobile Iv And Amiv will conduct audits of a franchisee's reports, books, records, and tax returns. Typically, these audits are at the expense of Advanced Mobile Iv And Amiv.
However, the franchisee will be required to reimburse Advanced Mobile Iv And Amiv for all audit costs if the franchisee understates gross sales by more than 2% for any reported period. The franchisee will also be responsible for audit costs if they fail to deliver any required report of gross sales or any required financial statement in a timely manner. These audit costs include charges from any independent accountant, as well as travel expenses, room, board, and compensation for Advanced Mobile Iv And Amiv's employees involved in the audit.
In the event that an audit reveals that the franchisee owes additional Royalty Fees, Marketing Fees, or late payment charges, the franchisee must make immediate payment. These payments do not prevent Advanced Mobile Iv And Amiv from pursuing other remedies available under the Franchise Agreement or by law. This means that franchisees need to ensure accurate reporting and timely submission of all required financial documents to avoid incurring audit costs and potential penalties from Advanced Mobile Iv And Amiv.