If I disagree with the results of a Baya Bar audit, what recourse do I have?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Pre-Opening Training (For New or Replacement Employees) | Our then-current per session training fee, plus expenses Current per session training fee = $3,000 | Before Training | We will train up to three people at no additional charge. If you request that we provide our pre-opening training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay our training fee as well as the trainees' expenses, including travel, lodging, meals and wages. |
| Additional Onsite Training/Remedial Training | Our then-current per diem rate per trainer, plus expenses Current per diem rate = $600 | When billed | If you request that we provide additional training or support at your Shop, or if as the result of an inspection or quality assurance audit we believe that remedial training is necessary, you must pay our daily fee for each trainer we send to your Shop, and you must reimburse each trainer's expenses, including travel, lodging and meals. |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is less | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full. * See below |
| Audit Fee | Cost of audit (estimated to be between $1,000 and $5,000) | When billed | Payable only if we find, after an audit, that you have understated Gross Sales by 2% or more or you have understated any amount you owe to us. You must also pay the |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, if an audit reveals that you have understated your Gross Sales by 2% or more, or that you have understated any amount you owe to Baya Bar, you will be responsible for the cost of the audit, which is estimated to be between $1,000 and $5,000. You will also be required to pay the understated amount plus interest.
The FDD does not explicitly state what recourse you have if you disagree with the findings of the audit. It is common practice in franchising for the franchisee to be able to challenge the results of an audit by providing additional documentation or explanations. However, the Baya Bar FDD does not detail a specific dispute resolution process for audit disagreements.
Therefore, as a prospective Baya Bar franchisee, you should ask the franchisor about the specific procedures for disputing audit findings. Clarify what documentation is acceptable, what steps you can take if you disagree with the audit results, and what options you have for resolving any disputes that may arise from an audit.