Under what conditions does All Dogs Unleashed require an audit, and what costs are the franchisee responsible for?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Relocation Fee and Expenses | $3,000 plus out-of pocket expenses reasonably incurred | Upon demand | If we approve relocation of the Facility, you must pay our relocation fee and reimburse us for out-of pocket costs incurred in connection with the relocation, which may include payment of realtor fees, architect fees, and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 9–12)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, an audit may be required if there is an understatement of Gross Sales. Specifically, if an audit reveals that the franchisee has understated their Gross Sales by 2% or more, All Dogs Unleashed will require the franchisee to cover the costs associated with the audit.
In addition to covering the cost of the audit itself, the franchisee is also responsible for paying All Dogs Unleashed the fees due on the underreported amount. This payment will also include interest calculated at the Default Rate. The Default Rate is defined as the lesser of 18% per annum or the highest commercial contract interest rate allowed by law in the location of the All Dogs Unleashed facility.
This policy incentivizes accurate reporting of Gross Sales by All Dogs Unleashed franchisees. Franchisees should ensure meticulous record-keeping and transparent reporting to avoid triggering an audit and incurring these additional expenses. The potential financial burden of an audit, coupled with the repayment of underreported fees and interest, underscores the importance of compliance with All Dogs Unleashed's reporting requirements.