When are Audit Fees 6 due for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Music Licensing Fee 4 | Amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing | As invoiced or otherwise agreed | We may require that the music licensing fee (the “Music Licensing Fee”) amount be paid directly to performing rights organizations (PROs) or to our then-current Approved Supplier (which may be us or our affiliate) that handles and manages these licenses for System franchisees. |
| Insurance Policies 5 | Amount of unpaid premium | As agreed | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
| Audit Fees 6 | Costs incurred by us in connection with conducting audit Currently, we estimate that such costs will typically be between $500 to $2,500 (plus costs of any travel) | Within 15 calendar days after receipt of audit report | Payable only if (a) an audit or review shows an understatement of Gross Sales for the audited period of 2% or more, or (b) the audit or review is being conducted in response to your failure to timely submit any reports required by your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Audit Fees 6 are due within 15 calendar days after receipt of the audit report. However, these fees are only payable under specific circumstances.
Specifically, Bft will only charge these fees if an audit or review reveals an understatement of Gross Sales for the audited period of 2% or more. Alternatively, Audit Fees 6 are payable if the audit or review is conducted because the franchisee failed to submit required reports on time, as mandated by the Franchise Agreement.
The FDD estimates that these audit costs typically range from $500 to $2,500, in addition to any travel costs incurred by Bft. Therefore, a prospective Bft franchisee should ensure accurate and timely reporting of Gross Sales to avoid triggering an audit and the associated fees.