When are audit expenses due from a Beyond Juicery Eatery franchisee?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT FOR FRANCHISE AGREEMENT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Audit Expenses (Note 4) | Cost of audit and investigation, plus Royalty and Marketing Fund Fees due on understatement, plus interest on understatement at highest legal rate not to exceed 1.5% per month | 30 days after billing | You are at all times solely responsible for your own costs and expenses associated with the audit. You are also responsible for the cost of the audit and our costs and expenses associated with the audit if the audit shows an understatement of your Restaurant's Gross Sales by 1% or more or an underpayment of the Royalty of 3% or more. You are responsible for the Royalty and Marketing Fund Fees for any understated Gross Sales plus interest on these amounts. |
Source: Item 6 — OTHER FEES (FDD pages 16–25)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, audit expenses are due 30 days after billing. These expenses can include the cost of the audit and investigation, plus any Royalty and Marketing Fund Fees due on the understatement of gross sales, in addition to interest on the understatement. The interest rate is set at the highest legal rate, but cannot exceed 1.5% per month.
The franchisee is responsible for all costs associated with the audit. If the audit reveals an understatement of the Restaurant's Gross Sales by 1% or more, or an underpayment of the Royalty of 3% or more, the franchisee will be responsible for the cost of the audit and Beyond Juicery Eatery's associated costs and expenses. The franchisee is also responsible for the Royalty and Marketing Fund Fees for any understated Gross Sales, along with interest on these amounts.
This means that if Beyond Juicery Eatery suspects a franchisee is underreporting sales, they can conduct an audit at the franchisee's expense if the audit confirms the understatement by the specified thresholds. Franchisees should maintain accurate records to avoid potential audit expenses and penalties.