What costs are included in the audit fee for a Browns Chicken franchise?
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, the audit fee covers the cost of the audit itself, including reimbursement of all of Browns Chicken's expenses. This fee is due at the time of the audit.
Browns Chicken may conduct an audit if a franchisee fails to provide required reports or other information, or if the franchisee understates gross sales by more than 2%. In such cases, the franchisee is responsible for covering all audit costs, including attorneys' and accountants' fees.
This means that a Browns Chicken franchisee could face significant expenses beyond the initial franchise fees if they fail to maintain accurate records or comply with reporting requirements. It is important for prospective franchisees to understand the importance of accurate financial reporting and to ensure they have systems in place to meet Browns Chicken's requirements to avoid triggering an audit and incurring these additional costs.