How is the Audit Fee calculated for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| actual costs of enforcement, whichever is higher | |||
| Audit Fee (standard audit) | 6% of the underreported amount | When billed | |
| Audit Cost | All costs and expenses associated with the audit, plus amount of outstanding fees due, if any | When billed | Due if your books or records are missing or incomplete at the time of the audit; and/or if it is determined you underreported amounts by 5% or more. See Note 5. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the standard audit fee is 6% of the underreported amount. This fee is charged when billed. In addition to the standard audit fee, Aplus may also charge an Audit Cost. This cost includes all expenses associated with the audit, plus the amount of outstanding fees due, if any.
The Audit Cost is due if your books or records are missing or incomplete at the time of the audit, or if it is determined that you underreported amounts by 5% or more. This means that Aplus franchisees must maintain accurate and complete financial records to avoid these additional audit costs.
For a prospective Aplus franchisee, this highlights the importance of accurate bookkeeping and financial reporting. Failure to maintain proper records or underreporting income can lead to significant audit fees and additional costs. Franchisees should ensure they have systems in place to accurately track and report all financial information to avoid potential penalties.