What does the audit fee for Browns Chicken cover?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit including reimbursement of all of Brown's expenses. | At the time of audit. | If you do not provide reports or other information as required and it is necessary to inspect or audit your books and records, or if you understate Gross Sales by more than 2%, you must pay all audit costs including attorneys' and accountants' fees. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees may be subject to an audit fee. This fee covers the cost of the audit itself, including reimbursement for all of Browns Chicken's expenses related to the audit. The audit fee is due at the time of the audit.
Browns Chicken will typically conduct an audit if a franchisee fails to provide required reports or other necessary information. Additionally, if a franchisee understates their Gross Sales by more than 2%, Browns Chicken may conduct an audit.
In the event that an audit is necessary due to the franchisee's failure to provide information or underreporting of sales, the franchisee is responsible for covering all associated costs. These costs include not only the direct expenses of the audit but also any attorneys' and accountants' fees incurred by Browns Chicken during the process. This policy incentivizes franchisees to maintain accurate records and provide timely reports to avoid triggering an audit and the associated expenses.