What conditions trigger the Audit Fee for a Best In Class Education Center franchisee?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT 2 | DUE DATE | REMARKS | |
|---|---|---|---|---|
| Audit Fee | Actual cost of audit (plus Travel Expenses for audit team) | 10 days after invoice | Imposed if audit (a) is required because you fail to submit required data or reports in a timely manner or (b) reveals you understated sales by 3% or more. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, an Audit Fee may be imposed on franchisees under specific circumstances. This fee, covering the actual cost of the audit and travel expenses for the audit team, becomes due 10 days after the invoice date.
The Audit Fee is triggered if an audit is required because the franchisee fails to submit necessary data or reports in a timely manner. Additionally, the fee is imposed if an audit reveals that the franchisee has understated sales by 3% or more.
This means that Best In Class Education Center franchisees must ensure accurate and timely submission of all required data and reports to avoid incurring this fee. Franchisees should maintain meticulous records of their sales and financial data to minimize the risk of an audit revealing discrepancies that could lead to the imposition of the Audit Fee, which includes not only the cost of the audit itself but also the travel expenses of the audit team.