How long does a Batteries Plus Bulbs franchisee have to pay the audit fee after billing?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (See Note 1) | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus 1½% interest per month from due date. | 30 days after billing | Payable only if audit shows an understatement of at least 2% of Net Revenues for any month. |
Source: Item 6 — Other Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, if an audit reveals that a franchisee has understated their Net Revenues by at least 2% for any given month, the franchisee will be responsible for covering the cost of the audit. Additionally, the franchisee will be charged interest at a rate of 1½% per month from the due date. The audit fee is due 30 days after the franchisee receives the billing statement.
It is important to note that the audit fee is only payable if the audit reveals a significant understatement of Net Revenues. This encourages franchisees to maintain accurate financial records and report their earnings correctly. The interest charge serves as an additional incentive for franchisees to pay the audit fee promptly once it is assessed.
Prospective Batteries Plus Bulbs franchisees should be aware of the conditions under which an audit may be conducted and the potential costs involved. Maintaining accurate financial records and promptly addressing any discrepancies can help franchisees avoid audit fees and associated interest charges. Franchisees should factor in the possibility of audit fees when projecting their potential expenses.