What is the estimated cost range for an audit fee charged to a Bb.Q Chicken franchisee?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount trainees that cannot be accommodated is $1,000 per person. | Due Date | Remarks training fee as well as the trainees' expenses, including travel, lodging, meals and wages. |
| Additional On-Site | Our then-current per person training fee, plus the trainer's actual expenses. Current per person training fee = $1,000 | When billed | If you request that we provide the second round of our initial training program for additional days at your Restaurant or Food Truck, you must pay our per person training fee for each person we train at your Restaurant or Food Truck, and you must reimburse our trainer's expenses, including travel, lodging and meals (You must provide lodging in three-star hotels and daily meals in the amount of $60.) |
| Training | |||
| Non-Sufficient Funds | $100 per occurrence | As incurred | If your check is returned or an electronic funds transfer from your bank account is denied, for each occurrence, we may charge you a Nonsufficient Funds Fee. If you incur three non-sufficient funds fees in any 12 months period, we have the right to terminate your Franchise Agreement" |
| Fee | |||
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is greater | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full |
| 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 any amount you owe to us or Gross Sales by 2% or more. You must also pay the understated amount plus interest. This fee may be charged to you twice during the term of your Franchise Agreement. If it is discovered a third time that you have u |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, an audit fee, if charged, is estimated to be between $1,000 and $5,000. This fee is only payable if an audit reveals that the franchisee has understated the amount owed to Bb.Q Chicken or their gross sales by 2% or more. In addition to the audit fee, the franchisee is also responsible for paying the understated amount plus interest.
Bb.Q Chicken can charge this audit fee up to two times during the term of the Franchise Agreement. However, if a third instance of underreporting is discovered, it could lead to further consequences as outlined in the agreement.
It's important to note that the audit fee is separate from the Quality Assurance Audits, which also have an estimated cost between $1,000 and $5,000, plus $500 per violation. The Quality Assurance Audits are conducted to ensure the franchisee is operating according to Bb.Q Chicken's specifications and quality standards.