When are audit/inspection costs due for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Audit/Inspection Costs | Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents | Upon billing | Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, audit and inspection costs are due upon billing. These costs cover the expense of the audit or inspection itself, including charges from professional advisors, travel expenses, room and board, and compensation or fees for Aw's employees or agents.
The circumstances that trigger these audit/inspection costs are specific. Aw will only bill for an audit if it becomes necessary due to a franchisee's failure to file reports, supporting records, financial statements, or other required information in a timely manner. Additionally, an audit will be triggered, and costs charged, if any audit reveals an understatement of reported Gross Sales greater than 2%.
This means that as an Aw franchisee, you can avoid these audit/inspection costs by ensuring timely and accurate submission of all required reports and financial information. It also highlights the importance of maintaining accurate sales records, as underreporting Gross Sales by more than 2% can lead to an audit and associated expenses.