What is the minimum amount charged for 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 minimum Audit Fee is $250. The actual cost of the audit will be charged, but it will not be less than $250. Additionally, if an audit reveals an understatement of more than 2% in reported gross sales, or if the franchisee fails to provide information in a timely manner, Canine Dimensions will charge twice the deficient amount.
This means that as a Canine Dimensions franchisee, you could incur audit fees of at least $250, and potentially much more if discrepancies are found in your reporting or if you are late in providing required information. Franchisees should ensure accurate and timely reporting of gross sales to avoid these additional costs.
Audit fees are not uncommon in franchising, as franchisors need to verify the accuracy of reported sales figures for royalty calculations. However, the specific terms can vary, so it's important to understand the conditions under which an audit may be triggered and the potential costs involved.