Under what conditions does Bor Restoration charge 'Audit Fees'?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
overnmental Authority that has jurisdiction over your Business and to which an Applicable Law applies.
- "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.
- "BOR Software Suite" means our proprietary suite of software preinstalled on the Tablet and containing estimating software and client relationship management (CRM) software.
- "BOR Software Suite Initial License Fee" means the then-current initial fee you will pay us to activate the BOR Software Suite.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, Audit Fees may be charged under specific circumstances related to financial reporting and operational compliance. Bor Restoration defines "Audit Fees" as the fees they charge if a franchisee understates their Gross Sales by 2% or more, or for any other audit permitted under the Franchise Agreement. These fees cover Bor Restoration's costs and expenses, including accountants' and attorneys' fees, travel, room, and board, plus a fixed fee payable to them. Bor Restoration retains the right to increase this fee at any time, provided they give the franchisee no less than 60 days' prior written notice.
Furthermore, Bor Restoration may charge its then-current Audit Fee if they find defects, deficiencies, or unsatisfactory conditions during inspections of the franchisee's business. Franchisees are expected to correct any such issues immediately and complete the corrections within the time granted for any cure under the Franchise Agreement.
For a prospective Bor Restoration franchisee, this means that accurate financial reporting is crucial to avoid Audit Fees. Underreporting Gross Sales, even unintentionally by more than 2%, can trigger these fees. Additionally, maintaining operational standards and addressing any deficiencies identified during inspections is essential to avoid incurring Audit Fees. Franchisees should be aware of the potential for these fees and factor them into their financial planning and operational practices.