When are Audit Costs payable to Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Audit Costs | Our actual costs and expenses of conducting audit, including travel and lodging. | Upon demand | Payable only if: (a) you did not submit Gross Revenue statements; (b) you did not keep full books and records; or (c) the total Gross Revenue you reported for any three consecutive months is more than 2% below the audited Gross Revenue. |
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Audit Costs are payable 'upon demand.' These costs cover Benjamin Franklin Plumbing's actual expenses for conducting an audit, including travel and lodging. However, these costs are only payable under specific circumstances.
Specifically, a Benjamin Franklin Plumbing franchisee will only be required to pay audit costs if one or more of the following conditions are met: (a) the franchisee did not submit Gross Revenue statements; (b) the franchisee did not keep full books and records; or (c) the total Gross Revenue the franchisee reported for any three consecutive months is more than 2% below the audited Gross Revenue.
This means that as long as a franchisee submits accurate and complete Gross Revenue statements, maintains thorough financial records, and ensures that their reported revenue is within 2% of the audited figures, they should not incur any audit costs from Benjamin Franklin Plumbing. It is important for prospective franchisees to understand these conditions to avoid unexpected expenses.