When does the daily fee for failure to cooperate with an audit begin 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, a franchisee will be charged a fee for failure to cooperate with an audit. Specifically, if a Big Apple Bagels franchisee fails to provide complete information requested in connection with an audit of their store, they will be assessed a penalty. This information 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 BAGELS Store.
The fee for failing to cooperate with an audit is $20 per day. This fee begins accruing on the first day of default. The due date for this fee is on demand.
In addition to the daily fee, Big Apple Bagels may also conduct an audit if a franchisee fails to furnish required reports or if an audit reveals an under-reporting of Gross Revenues by 2% or more. The franchisee is responsible for covering the costs of such an audit, including charges from independent accountants, travel expenses, room and board, and compensation for Big Apple Bagels employees involved in the audit. These audit costs are due 30 days after billing.