When is a Body Brain Center franchisee required to pay an audit fee?

According to Body Brain Center's 2025 Franchise Disclosure Document, a franchisee is required to pay an audit fee under specific circumstances. The audit fee is incurred if an audit reveals that the franchisee has understated the amount due to Body Brain Center by at least 3% for any monthly period. Additionally, the fee is applicable if the audit is necessary due to the franchisee's failure to provide required information or reports in a timely manner, or if sales records are not properly maintained. In addition to covering the actual cost of the audit and a fixed $2,500 charge, the franchisee is responsible for the travel and lodging expenses of the audit team.

This policy ensures that Body Brain Center can verify the accuracy of reported revenues and compliance with the franchise agreement. By imposing an audit fee under these conditions, Body Brain Center incentivizes franchisees to maintain accurate records and report sales figures honestly and on time. This protects the integrity of the franchise system and ensures fair financial dealings between the franchisor and its franchisees.

For a prospective Body Brain Center franchisee, it is crucial to maintain meticulous financial records and adhere to the reporting requirements outlined in the franchise agreement. Failure to do so not only risks incurring the audit fee, which includes the cost of the audit, a $2,500 charge, and travel expenses, but also necessitates paying any past due amounts along with applicable late fees. This highlights the importance of accurate bookkeeping and timely reporting to avoid these additional costs and maintain a positive relationship with Body Brain Center.