When are Audit Fees due 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, Audit Fees are due 'as incurred.' These fees cover the actual cost of the audit, with a minimum of $250, plus any deficiency found during the audit and applicable late charges.
This means that a Canine Dimensions franchisee will be responsible for paying audit fees whenever Canine Dimensions conducts an audit of their business. The cost can vary depending on the complexity and scope of the audit. It is important to note that if an audit reveals an understatement of more than 2% in reported sales, or if the franchisee fails to provide information in a timely manner, the franchisee will be required to pay twice the deficient amount.
Franchisees should maintain accurate and up-to-date financial records to avoid discrepancies that could lead to audit fees and penalties. Paying close attention to reporting requirements and deadlines is crucial to avoid additional charges. This is fairly standard in franchising, as franchisors need to ensure accurate royalty payments and compliance with the franchise agreement.
Prospective franchisees should inquire about the frequency and typical cost of audits to better understand the potential financial impact on their business. Understanding the conditions that trigger an audit and the process involved can help franchisees prepare and minimize the risk of incurring additional fees.