When is the audit cost due for Big Apple Bagels franchisees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Fee for Failure to Cooperate with Audit | $20 per day | On demand, beginning on the 1st day of default | You must pay a $20 per day fee if you fail to provide us complete information (business records, bookkeeping and accounting records, bank statements, sales and income tax records and returns, POS System tapes or reports, and other books and records of the BAGELS Store) that we request in connection with an audit of your Store. |
| Audit | Cost of examination or audit, including charges of independent accountants and travel expenses, room and board, compensation of BAB employees. | 30 days after billing. | If audit is necessary due to your failure to furnish reports or if audit shows an under-reporting of 2% or more of Gross Revenues. |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, franchisees are required to pay the cost of an audit within 30 days after billing. This audit cost covers the expenses of the examination or audit itself, including charges from independent accountants. It also includes travel expenses, room and board, and compensation for Big Apple Bagels employees involved in the audit.
This audit is triggered if a franchisee fails to furnish required reports or if an audit reveals that the franchisee has under-reported gross revenues by 2% or more. Therefore, it's crucial for Big Apple Bagels franchisees to maintain accurate records and submit reports on time to avoid incurring these audit-related costs.
In addition to the audit cost, Big Apple Bagels also charges a $20 per day fee if a franchisee fails to cooperate with the audit by not providing complete information requested by the franchisor. This includes business records, bookkeeping and accounting records, bank statements, sales and income tax records and returns, POS System tapes or reports, and other books and records of the Big Apple Bagels store. This fee begins on the first day of default.