When is the Audit fee due to Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date 2 | Remarks |
|---|---|---|---|
| Audit | Varies | Immediately upon receipt of invoice. | If an audit by us discloses an understatement of Gross Revenues in excess of 2% for any period or periods, you will be required to reimburse us for all costs of the audit in addition to paying past due Royalties, Advertising Fees (when imposed) plus any late |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the audit fee is due immediately upon receipt of invoice. The amount of the audit fee varies. Anago will conduct an audit if they suspect an understatement of gross revenues.
If an audit reveals that the franchisee has understated gross revenues by more than 2% for any period, the franchisee is responsible for reimbursing Anago for all costs associated with the audit. In addition to covering the audit expenses, the franchisee must also pay any past due royalties, advertising fees (if applicable), and any late fees that may apply.
This policy incentivizes accurate financial reporting from franchisees. Franchisees should maintain meticulous records of their gross revenues to avoid triggering an audit and potentially incurring these additional costs. The audit fee can vary, so it's important for prospective franchisees to understand the potential financial burden if discrepancies are found.