Under what circumstances would a Bft franchisee be required to pay Audit Fees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fees 6 | Costs incurred by us in connection with conducting audit Currently, we estimate that such costs will typically be between |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee may be required to pay audit fees under specific circumstances. The franchisee will be responsible for covering the costs Bft incurs while conducting an audit, which are estimated to typically range from $500 to $2,500, in addition to any travel expenses. These audit fees become payable within 15 calendar days of receiving the audit report.
Specifically, Bft will require the franchisee to pay audit fees if an audit or review reveals that the franchisee understated their Gross Sales by 2% or more during the audited period. Additionally, audit fees are payable if the audit or review is initiated because the franchisee failed to submit required reports to Bft in a timely manner, as outlined in the Franchise Agreement.
In addition to covering the audit costs, if an understatement of Gross Sales is discovered, the franchisee will also be required to pay the amount of the understatement, along with any applicable late fees and interest. This policy ensures that Bft can verify the accuracy of reported sales and that franchisees comply with reporting requirements, with the cost of non-compliance ultimately borne by the franchisee.