What additional costs are associated with the Audit Fee for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fees | Actual Cost of Audit ($250 minimum), plus the amount of deficiency and applicable late charges | As incurred. | If an audit reveals an understatement of more than 2%, or if you fail to furnish information in a timely fashion, you will pay us twice the deficient amount. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Audit Fee includes several potential additional costs. The franchisee is responsible for the actual cost of the audit, with a minimum of $250. In addition to the base cost, if the audit reveals an understatement of gross sales exceeding 2%, the franchisee must pay twice the deficient amount.
Furthermore, the franchisee will be responsible for applicable late charges related to the deficient amount. The audit fee is incurred if the franchisee fails to furnish information in a timely manner.
These additional costs highlight the importance of accurate record-keeping and timely reporting of gross sales to Canine Dimensions. Franchisees should ensure they have systems in place to track and report sales accurately to avoid triggering an audit and incurring these additional fees.