Under what conditions will a Beyond Juicery Eatery franchisee be responsible for audit expenses?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4 You must keep complete and accurate books and records of the operations of your Restaurant in a form acceptable to or designated by us and report financial information to us as we require, in a format that we require. You must use the professional accounting services of an accountant or accounting firm. At our sole discretion, our authorized agent has the right to examine and make copies of your books, records, and tax returns. You must waive any accountant/client privilege to allow your accounting firm to disclose to us information required to be disclosed by you in the Franchise Agreement or as we may otherwise require. On an annual basis, we may initiate an audit of your books to ensure that you are properly accounting for all Gross Sales or other reasons in our sole discretion. You are at all times responsible for your own costs and expenses associated with the audit. You will also be responsible to pay Audit Expenses in the event that you understate Gross Sales by 1% or more or an underpayment of the Royalty of at least 3% or more. You will also be responsible to pay to us the Royalty Fees and Marketing Fund Fees on the deficiency plus interest at the maximum legal rate.
Source: Item 6 — OTHER FEES (FDD pages 16–25)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, franchisees are always responsible for their own costs and expenses associated with an audit. However, the franchisee will also be responsible for paying the audit expenses if an audit reveals that the franchisee understated Gross Sales by 1% or more, or if there was an underpayment of the Royalty of at least 3% or more.
In addition to covering the audit expenses under those conditions, the franchisee is also responsible for paying Beyond Juicery Eatery the Royalty Fees and Marketing Fund Fees on the deficiency, plus interest. The interest will be calculated at the maximum legal rate.
This means that Beyond Juicery Eatery franchisees must maintain accurate financial records and report sales and royalty fees correctly. Failure to do so can result in not only the cost of the audit itself but also additional fees and interest on any underpayments. This incentivizes franchisees to ensure compliance with reporting requirements and maintain transparent financial practices.