Can Bor Restoration increase the 'Audit Fees'?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Audit Fees" means the then-current fees we charge if you understate your Gross Sales by 2% or more or for any other audit permitted under this Franchise Agreement.
This fee includes our costs and expenses, including any accountants' and attorneys' fees, travel, room, and board, plus a fixed fee payable to us.
We may increase this fee at any time and in any amount after giving you no less than 60 days' prior written notice.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, Bor Restoration can increase the Audit Fees at any time. Bor Restoration must provide franchisees with no less than 60 days' prior written notice before increasing this fee.
The Audit Fees are defined as the fees Bor Restoration charges if a franchisee understates their Gross Sales by 2% or more, or for any other audit permitted under the Franchise Agreement. This fee covers Bor Restoration's costs and expenses, including accountants' and attorneys' fees, travel, room, and board, plus a fixed fee payable to them.
This policy is fairly standard in franchising, as it allows the franchisor to recoup costs associated with audits that reveal underreporting. The 60-day notice period gives franchisees some time to prepare for the increase. However, franchisees should be aware that Bor Restoration has the right to increase this fee at any time and in any amount, provided they give the required notice.