Under what conditions will Best In Class Education Center NOT impose a late fee?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
17.2. Audit. We may audit your books and records at any time. You must fully cooperate with us and any Person we hire to conduct the audit. If an audit reveals an understatement of Gross Sales, Special Program Sales or Affiliate Program Sales, you must immediately pay us all additional fees you owe together with any late fee imposed pursuant to §14.5. You must reimburse us for the cost of any audit (including reasonable accounting and attorneys' fees and Travel Expenses incurred by us or the auditor) that: (a) is required due to your failure to provide information we request, preserve records or file reports as required by this Agreement; or (b) reveals an understatement of Gross Sales, Special Program Sales or Affiliate Program Sales by at least 3%. We bear the cost of all other audits. Your reimbursement of our audit costs does not preclude us from terminating this Agreement
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Best In Class Education Center outlines the circumstances under which a franchisee would be exempt from audit costs, which are related to potential late fees. Specifically, Best In Class Education Center will bear the cost of audits under certain conditions.
According to the FDD, Best In Class Education Center will cover the expenses of audits if the audit is not required due to a franchisee's failure to provide requested information, preserve records, or file required reports. Additionally, Best In Class Education Center will pay for the audit if it does not reveal an understatement of Gross Sales, Special Program Sales, or Affiliate Program Sales by at least 3%.
In practical terms, this means a Best In Class Education Center franchisee will not be responsible for audit costs, which can include accounting and attorney's fees, if they maintain accurate records, provide requested information promptly, and accurately report their sales figures. This provision protects franchisees from incurring additional expenses related to audits that do not reveal significant discrepancies or are not a result of the franchisee's negligence or errors in reporting.