When is the Quality Assurance Audit fee payable to Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| POS Fee | Currently $165 per month | As incurred | |
|---|---|---|---|
| Self-Serve Kiosk Fee | $279 per month or for 2 or more kiosks, $199 per month per kiosk | As incurred | |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Quality Assurance Audit fee is payable 'As invoiced.' This means that Bang Cookies will send an invoice to the franchisee for the actual costs they incurred related to the audit, and the franchisee is responsible for paying that amount upon receipt of the invoice.
The FDD specifies that these audits may include mystery shopper programs, indicating that Bang Cookies actively monitors the quality of its franchise locations. The fee covers the actual costs Bang Cookies incurs for engaging a third party to conduct these audits.
It is important for prospective Bang Cookies franchisees to understand that the cost of these audits can vary depending on the scope and complexity of the audit performed. Franchisees should budget for this potential expense and ensure they maintain high operational standards to minimize the likelihood of needing frequent or extensive quality assurance audits.