What is the minimum amount of the Burneys Sweets More audit fee?
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, the minimum audit fee is $1,500. The actual cost could be higher, as the franchisee is responsible for paying the greater of $1,500 or the actual cost of the audit.
Burneys Sweets More will conduct an audit if they suspect underpayment of fees. If the audit reveals an underpayment of 2% or greater, the franchisee is responsible for the audit fee and the underpaid amount. However, if the underpayment is 2% or less, Burneys Sweets More will cover the cost of the audit.
This policy is fairly standard in franchising. It incentivizes franchisees to accurately report their gross sales and pay the correct royalties. Prospective Burneys Sweets More franchisees should ensure they have accounting practices in place to accurately track and report sales to avoid triggering an audit and potentially incurring these fees.