What happens if I miscalculate Gross Sales for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2. Audit. We may audit your books and records at any time. You must fully cooperate with us and any Person we hire to conduct the audit. If an audit reveals an understatement of Gross Sales, you must immediately pay us all additional fees you owe together with any late fee imposed pursuant to §13.4. You must reimburse us for the cost of any audit (including reasonable accounting and attorneys' fees and Travel Expenses incurred by us or the auditor) that: (a) is required due to your failure to provide information we request, preserve records or file reports as required by this Agreement; or (b) reveals
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, if an audit reveals an understatement of Gross Sales, the franchisee must immediately pay Bigfoot Forestry all additional fees owed, along with any late fee imposed.
Furthermore, the franchisee is responsible for reimbursing Bigfoot Forestry for the cost of the audit. This includes reasonable accounting and attorneys' fees, as well as travel expenses incurred by Bigfoot Forestry or the auditor. This reimbursement is required if the audit was necessary due to the franchisee's failure to provide requested information, preserve records, or file reports as required by the Franchise Agreement.
This clause highlights the importance of accurate record-keeping and reporting of Gross Sales. Franchisees should ensure they have systems in place to track revenue correctly and maintain thorough documentation to avoid potential discrepancies and the associated financial penalties. The potential for covering audit costs, in addition to unpaid fees and late penalties, could create a significant financial burden for a franchisee who inaccurately reports sales figures.