When is the Burneys Sweets More audit fee due?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | The greater of $1,500 or actual cost of audit. | At once if audit shows 2% or greater underpayment. | You also pay the underpayment, if any. We pay for the audit if underpayment is 2% or less. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, an audit fee is due immediately if an audit reveals an underpayment of 2% or greater. The audit fee will be the greater of $1,500 or the actual cost of the audit.
If the audit uncovers an underpayment exceeding the 2% threshold, the franchisee is also responsible for paying the amount that was underpaid. However, if the audit determines that the underpayment is 2% or less, Burneys Sweets More will cover the cost of the audit.
This policy incentivizes franchisees to maintain accurate financial records and make timely and correct royalty payments. Franchisees should ensure their accounting practices are thorough to avoid potential audit fees and underpayment penalties. It is also important to note that the franchisor has the right to adjust fees according to market conditions, including inflation.