What is the auditor required to maintain throughout the audit of Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care has the right during normal working hours to audit Your books and records, including Your tax returns with respect to the Augusta Lawn Care Business. If an audit discloses an underpayment of royalties, advertising, or other fees payable under this Agreement, You shall immediately pay these amounts to Augusta Lawn Care, together with accrued interest on the amount underpaid in accordance with Section 6.9 of this Agreement. In addition, if the underpayment exceeds two percent (2%) of the total royalty, advertising, or other fee payable for any period covered under the audit, You shall reimburse Augusta Lawn Care for all expenses actually incurred by Augusta Lawn Care in connection with the audit, including reasonable attorneys' fees.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Augusta Lawn Care has the right to audit a franchisee's books and records during normal working hours, including tax returns related to the Augusta Lawn Care business. If an audit reveals underpayment of royalties, advertising, or other fees, the franchisee must immediately pay the underpaid amounts along with accrued interest as per Section 6.9 of the agreement.
Furthermore, if the underpayment exceeds two percent of the total royalty, advertising, or other fee payable for any period covered by the audit, the franchisee is responsible for reimbursing Augusta Lawn Care for all expenses incurred in connection with the audit. This includes reasonable attorney's fees.
The FDD does not specify any requirements for the auditor to maintain any specific records or documentation throughout the audit process. It primarily focuses on Augusta Lawn Care's rights and the franchisee's obligations in the event of an audit.