What do the audit/inspection costs for an Aw franchise include?
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, franchisees may incur audit/inspection costs. These costs encompass the expense of the audit or inspection itself, including charges from professional advisors. Additionally, franchisees are responsible for covering travel expenses, room and board, as well as compensation or fees for Aw's employees or agents involved in the audit or inspection. These costs are due upon billing.
These audit/inspection costs are payable if an audit is deemed necessary due to a franchisee's failure to submit required reports, supporting records, financial statements, or other necessary information in a timely manner. Furthermore, if an audit reveals an understatement of reported Gross Sales exceeding 2%, the franchisee will be responsible for these costs.
This policy is fairly standard in franchising, as franchisors need to ensure brand standards and accurate financial reporting across all locations. Franchisees should maintain meticulous records and adhere to reporting deadlines to avoid triggering an audit and incurring these potentially significant expenses. It is also important to ensure that sales are accurately reported to avoid any discrepancies.