When is the Audit fee due for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of inspection or audit; currently $3,500. | As incurred. | Payable only if you fail to furnish reports or records or if the audit reveals you have understated your Gross |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the audit fee is due as incurred. The audit fee, which is currently $3,500, is payable only if a franchisee fails to furnish required reports or records, or if an audit reveals that the franchisee has understated their Gross Sales.
This means that a Bens Soft Pretzels franchisee will not routinely pay an audit fee. However, if the franchisee fails to provide necessary documentation or if discrepancies are found during an audit, they will be responsible for covering the cost of the inspection or audit, which is currently set at $3,500. This fee is in addition to any other penalties or legal ramifications that may arise from the failure to report accurately.
Franchisees should maintain accurate and complete records to avoid triggering an audit and incurring this fee. It is a standard practice in franchising for franchisors to reserve the right to audit franchisee records to ensure compliance with the franchise agreement and accurate reporting of sales.